We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vertex (VRTX) Q2 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) announced second-quarter 2018 earnings per share of 94 cents, which beat the Zacks Consensus Estimate of 72 cents. Moreover, the figure came ahead of the year-ago bottom line of 39 cents. Strong product revenues led to higher profits in the reported quarter.
Vertex reported revenues of $752.2 million in the second quarter, surpassing the Zacks Consensus Estimate of $673 million. Sales rose 38.2% year over year, driven by higher sales of its cystic fibrosis (CF) products.
Shares of Vertex have rallied 18% so far this year against the industry’s decrease of 2.7%.
CF Drugs Sales Remain Strong
Vertex’s second-quarter revenues consisted of sales from its cystic fibrosis (CF) products such as Kalydeco, Orkambi and Symdeko, collaborative revenues of $1.2 million and royalty revenues of $1.1 million.
Total CF product revenues were $750 million in the second quarter, up 46% year over year, mainly driven by the rapid uptake and strong demand for its newest CF medicine, Symdeko, launched in the United States in February. Kalydeco sales also rose in the quarter under review while Orkambi sales declined.
Symdeko contributed $186 million to the top line. In June, the drug was approved in Canada for the same indication. Symdeko is under review in the EU for a similar indication and is expected to be approved during the second half of 2018.
Kalydeco (ivacaftor) sales surged 33.2% to $253 million, driven by continued label expansions with increase in patient population.
However, Orkambi (lumacaftor/ivacaftor) sales were down 4% year over year to $311 million due to a switch in patient base to Symdeko from Orkambi.
Costs Rise
Adjusted research and development (R&D) expenses increased 17% to $281 million in the second quarter, primarily due to the advancement of the company's portfolio of triple combination regimens for CF.
Adjusted selling, general and administrative (SG&A) expenses rose 15.1% to $107 million in the quarter was due to the investments made to support the treatment of CF patients globally.
2018 Revenue Guidance
Vertex raised its revenue guidance for 2018. The company expects CF revenues in the range of $2.9 to $3 billion in 2018 compared to $2.65 to $2.8 billion expected previously.
Guidance for combined adjusted research and development (R&D) plus selling, general and administrative (SG&A) expenses in 2018 were maintained in the range of $1.50-$1.55 billion.
Pipeline & Regulatory Updates
Vertex remained focused on developing its triple combination regimens for the treatment of CF. The company advanced two next-generation CFTR correctors — VX-659 and VX-445 — to phase III stage as part of a triple combination with tezacaftor (VX-661) and ivacaftor. Vertex is evaluating both the combinations in two separate studies for F508del/Min and F508del homozygous patients.
The company estimates to complete the enrollment in these trials by the second half of this year.
Vertex is also developing treatments for sickle cell disease, thalassemia, influenza and pain management. During the second quarter, Vertex announced positive data from a phase II proof-of-concept study, evaluating its pain candidate, VX-150, for acute pain following bunionectomy surgery. This was the second positive proof-of-concept analysis for VX-150. A third phase II program of VX-150 is currently under way to treat neuropathic pain with data expected in early 2019.
Together with CRISPR Therapeutics (CRSP - Free Report) , the company has filed clinical trial applications (CTAs) in various European countries to conduct a phase I/II study on CTX001, an autologous gene-edited hematopoietic stem cell therapy for patients suffering β-thalassemia. However, the FDA has placed a clinical hold on an investigational new drug application for CTX001 in sickle cell disease. Vertex and CRISPR Therapeutics plan to work rapidly with the FDA to resolve the issue so that the clinical hold is lifted and the study initiated.
Vanda Pharmaceuticals’ earnings estimates have been revised 11.1% upward for 2018 and 3.9% for 2019 over the past 60 days. The stock has surged 34.5% so far this year.
Illumina’s earnings estimates have been moved 0.2% north for 2018 and 0.4% for 2019 over the past 60 days. The stock has soared 44.6% so far this year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Vertex (VRTX) Q2 Earnings and Revenues Surpass Estimates
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) announced second-quarter 2018 earnings per share of 94 cents, which beat the Zacks Consensus Estimate of 72 cents. Moreover, the figure came ahead of the year-ago bottom line of 39 cents. Strong product revenues led to higher profits in the reported quarter.
Vertex reported revenues of $752.2 million in the second quarter, surpassing the Zacks Consensus Estimate of $673 million. Sales rose 38.2% year over year, driven by higher sales of its cystic fibrosis (CF) products.
Shares of Vertex have rallied 18% so far this year against the industry’s decrease of 2.7%.
CF Drugs Sales Remain Strong
Vertex’s second-quarter revenues consisted of sales from its cystic fibrosis (CF) products such as Kalydeco, Orkambi and Symdeko, collaborative revenues of $1.2 million and royalty revenues of $1.1 million.
Total CF product revenues were $750 million in the second quarter, up 46% year over year, mainly driven by the rapid uptake and strong demand for its newest CF medicine, Symdeko, launched in the United States in February. Kalydeco sales also rose in the quarter under review while Orkambi sales declined.
Symdeko contributed $186 million to the top line. In June, the drug was approved in Canada for the same indication. Symdeko is under review in the EU for a similar indication and is expected to be approved during the second half of 2018.
Kalydeco (ivacaftor) sales surged 33.2% to $253 million, driven by continued label expansions with increase in patient population.
However, Orkambi (lumacaftor/ivacaftor) sales were down 4% year over year to $311 million due to a switch in patient base to Symdeko from Orkambi.
Costs Rise
Adjusted research and development (R&D) expenses increased 17% to $281 million in the second quarter, primarily due to the advancement of the company's portfolio of triple combination regimens for CF.
Adjusted selling, general and administrative (SG&A) expenses rose 15.1% to $107 million in the quarter was due to the investments made to support the treatment of CF patients globally.
2018 Revenue Guidance
Vertex raised its revenue guidance for 2018. The company expects CF revenues in the range of $2.9 to $3 billion in 2018 compared to $2.65 to $2.8 billion expected previously.
Guidance for combined adjusted research and development (R&D) plus selling, general and administrative (SG&A) expenses in 2018 were maintained in the range of $1.50-$1.55 billion.
Pipeline & Regulatory Updates
Vertex remained focused on developing its triple combination regimens for the treatment of CF. The company advanced two next-generation CFTR correctors — VX-659 and VX-445 — to phase III stage as part of a triple combination with tezacaftor (VX-661) and ivacaftor. Vertex is evaluating both the combinations in two separate studies for F508del/Min and F508del homozygous patients.
The company estimates to complete the enrollment in these trials by the second half of this year.
Vertex is also developing treatments for sickle cell disease, thalassemia, influenza and pain management. During the second quarter, Vertex announced positive data from a phase II proof-of-concept study, evaluating its pain candidate, VX-150, for acute pain following bunionectomy surgery. This was the second positive proof-of-concept analysis for VX-150. A third phase II program of VX-150 is currently under way to treat neuropathic pain with data expected in early 2019.
Together with CRISPR Therapeutics (CRSP - Free Report) , the company has filed clinical trial applications (CTAs) in various European countries to conduct a phase I/II study on CTX001, an autologous gene-edited hematopoietic stem cell therapy for patients suffering β-thalassemia. However, the FDA has placed a clinical hold on an investigational new drug application for CTX001 in sickle cell disease. Vertex and CRISPR Therapeutics plan to work rapidly with the FDA to resolve the issue so that the clinical hold is lifted and the study initiated.
Vertex currently carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the biotech sector are Vanda Pharmaceuticals Inc. (VNDA - Free Report) and Illumina, Inc. (ILMN - Free Report) . Both companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vanda Pharmaceuticals’ earnings estimates have been revised 11.1% upward for 2018 and 3.9% for 2019 over the past 60 days. The stock has surged 34.5% so far this year.
Illumina’s earnings estimates have been moved 0.2% north for 2018 and 0.4% for 2019 over the past 60 days. The stock has soared 44.6% so far this year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>