Vertex lifts annual revenue forecast on cystic fibrosis treatments strength

Vertex Pharmaceuticals Incorporated lifted its annual revenue forecast on Thursday as demand for its cystic fibrosis treatments continued to grow, offsetting a decline in sales of its hepatitis C medicines.

The company now expects 2023 revenue to be between $9.35 billion and $9.55 billion, up from its prior forecast of $9.1 billion to $9.3 billion. Analysts on average were expecting revenue of $9.4 billion, according to Refinitiv data.

Vertex shares rose 2.5% to $314.85 in premarket trading.

The Boston-based company's cystic fibrosis drugs, Trikafta and Kalydeco, have been a major growth driver in recent years, as they have helped to improve the lives of patients with the rare genetic disease.

Trikafta, which treats the underlying cause of cystic fibrosis in about 90% of patients, brought in $7.3 billion in sales in 2022, up 20% from the previous year. Kalydeco, which treats a specific mutation of the cystic fibrosis gene, brought in $1.2 billion, up 6%.

Sales of Vertex's hepatitis C drugs, however, declined 27% to $1.2 billion in 2022. The company faces competition from newer, more effective treatments from rivals such as Gilead Sciences Inc. and AbbVie Inc.

Despite the decline in hepatitis C sales, Vertex is confident in its long-term growth prospects. The company is investing heavily in research and development, and it has a number of promising drugs in its pipeline.

In addition to its cystic fibrosis drugs, Vertex is also developing treatments for other rare diseases, such as sickle cell disease and beta-thalassemia. The company expects to file for regulatory approval of its sickle cell disease drug in the second half of 2023.