Vertex Pharma lifts annual revenue forecast on cystic fibrosis treatments strength

5:04 pm Monday, November 04th, 2024

(Reuters) – Vertex Pharmaceuticals raised its annual revenue forecast on Monday after it beat third-quarter estimates on demand for its cystic fibrosis (CF) treatments.

The drugmaker now expects 2024 product revenue between $10.8 billion and $10.9 billion compared to its prior expectations of $10.65 billion to $10.85 billion.

Analysts expect annual revenue of $10.75 billion, according to estimates compiled by LSEG.

The forecast includes expectations for continued growth in its CF treatments as well as for the launch of its gene therapy, Casgevy, in approved indications and geographies, the company said.

Cystic fibrosis is a genetic disorder that affects the lungs, digestive system and other organs, which affects about 35,000 people in the United States, according to government data.

Sales of Vertex’s top-selling CF drug Trikafta rose more than 13% to $2.59 billion for the quarter ended Sept. 30, beating analysts’ estimate of $2.33 billion.

The company also beat third-quarter revenue estimates on Monday, helped by strong demand for its CF treatments.

Third-quarter revenue rose 12% to $2.77 billion compared to analysts’ estimates of $2.72 billion.

The company’s gene therapy, Casgevy, won a second U.S. approval to treat a rare blood disorder requiring regular blood transfusions in January, after it was greenlighted in December for sickle cell disease.

As of mid-October, the drugmaker has activated 45 authorized treatment centers globally for the therapy and added that an increasing number of patients across all regions have initiated cell collection.

Investors have also been closely tracking the development of the company’s pain drug suzetrigine. The U.S. health regulator is expected to decide by January on Vertex’s application for the non-opioid drug as a treatment for moderate-to-severe acute pain.

On adjusted basis, the company reported a profit of $4.38 per share for the reported quarter, compared to analysts’ expectations of profit per share of $4.14.

(Reporting by Sriparna Roy and Sneha S K in Bengaluru; Editing by Shailesh Kuber)