Vertex Pharmaceuticals (NYSE:VRTX) is a bio-pharmaceutical company based in Boston, U.S. The company is one of the first bio-pharma companies that uses rational drug design, whereby its drug molecule is complementary in shape and charge to the biochemical target. This allows the drug to bind itself to and inhibit the target. The company’s current commercial drugs primarily deal with Cystic Fibrosis (CF). VRTX’s most important drug – a 3-in-1 pill called ‘Trikafta’ – was approved by the USFDA in Oct 2019.
The treatment was approved for roughly 90% of the 27,000 Cystic Fibrosis patients in the U.S. With one Trikafta treatment costing $311,000 per year, this could substantially boost Vertex’s revenues over coming years. The company’s Q3 earnings also beat estimates with EPS coming in at $1.23 per share as against consensus estimate of $1.15 per share. These factors drove the strong rally in Vertex’s stock in the previous quarter.
We step back from these recent swings to review Vertex Pharmaceuticals’ performance over the last few years, as a context for what might come next. Our Interactive dashboard – Why Did Vertex Pharmaceuticals (VRTX) Share Price Rally 30% In The Last Quarter Of 2019?, reviews the near term reasons and the big picture.
The context for the last few years:
A closer look At Vertex Pharmaceuticals’ Total Revenues over the last few years and the outlook
Total Revenues for Vertex Pharmaceuticals substantially increased from $2.5 Bil in 2017 to $3 Bil in 2018; an increase of 22.5% on account of approval of their third Cystic Fibrosis medicine SYMDEKO/SYMKEVI. This compares with Total Revenues growth of 46.2% in 2017. We expect Total Revenues to grow by 23.4% to $3.8 Billion in 2019.
A closer look At Vertex Pharmaceuticals’ Total Expenses over the last few years and the outlook
Total Expense for Vertex Pharmaceuticals marginally decreased from $2.5 Bil in 2017 to $2.4 Bil in 2018; a decrease of 2.3%. This compares with Total Expense growth of 41.5% in 2017 on account of higher R&D expenses. We expect Total Expense to decrease by 3.8% in 2019.
How does Vertex Pharmaceuticals’ Revenue Growth compare with rivals?
For more information on how Vertex Pharmaceuticals’ revenue growth compares with Alexion Pharmaceuticals, Regeneron Pharmaceuticals and Incyte Corporation, view our interactive dashboard analysis.
How has Vertex Pharmaceuticals’ EBT trended?
EBT for Vertex Pharmaceuticals increased substantially from -$15.7 Mil in 2017 to $600 Mil in 2018. We further expect EBT to increase by 134% to $1.4 Bil in 2019.
How has Vertex Pharmaceuticals’ Net Income and EPS trended?
For more details about Vertex Pharmaceuticals’ Net Income and EPS, view our interactive dashboard analysis
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