Vertex Pharmaceuticals Announces a Significant Increase in Revenue Guidance

Company sees growth in cystic fibrosis treatment; expects 'multibillion-dollar franchise' with new medicine

Vertex Pharmaceuticals Inc. raised its full-year revenue outlook on Tuesday, as strong demand for its cystic fibrosis (CF) medicines and the potential for a new blockbuster drug boost its shares.

Cystic fibrosis revenue drives growth

Revenue for the third quarter ended Sept. 30 was $2.29 billion, compared with the average analyst estimate of $2.17 billion, according to Refinitiv IBES data.

The company's CF medicines brought in $1.96 billion in sales, up from $1.69 billion a year earlier. The medicines help patients breathe more easily by thinning the thick mucus that builds up in their lungs.

New drug shows promise

Vertex, based in Boston, said its experimental gene-editing medicine VX-880 could be a "multibillion-dollar franchise" if approved by regulators.

The drug is designed to treat the underlying cause of CF, a rare genetic disease that affects about 75,000 people worldwide.

Vertex said VX-880 met the main goal of its Phase 2b clinical trial, significantly improving lung function in patients with CF who have one of the most common mutations of the CFTR gene.

The company plans to file for regulatory approval in the United States and Europe in the second half of 2023.

Analysts optimistic

Analysts were upbeat about Vertex's prospects.

"Vertex reported another quarter of strong execution with continued growth in its CF franchise and positive data from the VX-880 Phase 2b study," wrote SVB Securities analyst David Risinger in a note to clients.

RBC Capital Markets analyst Brian Abrahams said the VX-880 data was "a major positive development for Vertex and could materially expand its long-term growth potential."

Shares rise

Vertex shares rose 7.2% to $324.90 in premarket trading.

The stock has gained about 30% this year, outperforming the broader market.