Vertex Pharmaceuticals Clocks 27% Growth In Product Revenues, Issues FY22 Guidance

Vertex Pharmaceuticals Incorporated VRTX posted Q4 FY21 product revenues increased 27% Y/Y to $2.07 billion, slightly better than the consensus of $2.00 billion.

• The growth is primarily driven by the strong launches of Kaftrio in Europe and the performance of Trikafta in the U.S. 
• Kaftrio/Trikafta sales jumped 55% to $1.69 billion. In contrast sales declined from Symdeko/Symkevi (-37% to $80 million), Orkambi (-32% to $147 million), and Kalydeco (-21% at $152 million).
• The adjusted operating income increased 27% to $1.12 billion, while the margin remained almost stagnant at 54% in Q4.
• Adjusted net income increased 31% to $866 million.
• The Company held cash, cash equivalents, and marketable securities of $7.5 billion.
• Combined non-GAAP R&D and SG&A expenses reached $703 million from $539 million reported a year ago.
• Guidance: Vertex forecasts FY22 sales of $8.4 billion - $8.6 billion, with combined Non-GAAP R&D and SG&A expense of $2.70 to $2.75 billion.
• The Company is advancing a broad clinical pipeline across six disease areas multiple programs in mid-and late-stage development, with clinical readouts expected in 2022.
• Price Action: VRTX shares closed at $226.58 on Wednesday.