Vertex’s product revenues of $1.52 billion, a 77% increase compared to Q1 2019, with net income reported of $602,753.
BOSTON–(BUSINESS WIRE)–Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today reported consolidated financial results for the first quarter ended March 31, 2020 and revised upward its full-year 2020 financial guidance for total cystic fibrosis (CF) product revenues.
“The COVID-19 pandemic has presented unprecedented challenges to societies, communities and businesses around the world, and while these global challenges will continue for some time to come, I am very proud of how Vertex has responded to ensure that we continue to deliver on our mission for patients, keep our employees safe and achieve our business goals,” said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex. “Importantly, our business continues to grow, and throughout the first quarter, thousands of patients initiated treatment with our medicines worldwide. The U.S. launch of TRIKAFTA has been remarkable, with the majority of eligible patients having now initiated treatment with this medicine. This strong interest reflects TRIKAFTA’s substantial benefits for patients and has resulted in significant increases in revenue to support continued investment in both our internal pipeline and business development efforts to support future growth. Looking ahead, we continue to be differentiated by our focus on serial innovation, investment in transformative medicines aimed at the underlying cause of disease, the breadth of our pipeline and capabilities and our financial strength.”
First-Quarter 2020 Financial Highlights
Total product revenues increased 77% compared to the first quarter of 2019, primarily driven by the uptake of TRIKAFTA in the U.S. and the uptake of our medicines outside the U.S. following the completion of key reimbursement agreements in 2019.
GAAP and Non-GAAP net income each increased more than 120% compared to the first quarter of 2019, largely driven by the strong growth in total product revenues.
Cash, cash equivalents and marketable securities as of March 31, 2020 were $4.2 billion, an increase of approximately $400 million compared to $3.8 billion as of December 31, 2019.
First-Quarter 2020 Expenses
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Three Months Ended March 31, |
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2020 |
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2019 |
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(in millions) |
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Combined GAAP R&D and SG&A expenses |
$ |
631 |
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$ |
487 |
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Combined Non-GAAP R&D and SG&A expenses |
$ |
477 |
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$ |
388 |
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GAAP R&D expense |
$ |
449 |
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$ |
339 |
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Non-GAAP R&D expense |
$ |
337 |
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$ |
273 |
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GAAP SG&A expense |
$ |
182 |
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$ |
147 |
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Non-GAAP SG&A expense |
$ |
140 |
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$ |
114 |
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GAAP income taxes |
$ |
55 |
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$ |
52 |
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Non-GAAP income taxes |
$ |
184 |
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$ |
81 |
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GAAP effective tax rate |
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8 |
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% |
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16 |
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% |
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Non-GAAP effective tax rate |
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21 |
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% |
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21 |
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% |
Combined GAAP and Non-GAAP R&D and SG&A expenses increased compared to the first quarter of 2019, primarily due to the incremental investment to support the global use of Vertex’s medicines and the expansion of Vertex’s pipeline in CF and other new disease areas.
GAAP and Non-GAAP income taxes increased compared to the first quarter of 2019 primarily due to Vertex’s increased operating income. Refer to “Supplemental Income Tax Information” for discussion of the cash versus non-cash components of Vertex’s provision for income taxes.
Full-Year 2020 Financial Guidance
Vertex Wednesday revised upward its guidance for full-year 2020 CF product revenues and reiterated its guidance for GAAP and non-GAAP combined R&D and SG&A expenses and for its non-GAAP effective tax rate, as summarized below:
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Current FY 2020 |
Previous FY 2020 |
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TOTAL product revenues |
$ |
5.3 to 5.6 billion |
$ |
5.1 to 5.3 billion |
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Combined GAAP R&D and SG&A expenses |
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Unchanged |
$ |
2.4 to 2.55 billion |
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Combined Non-GAAP R&D and SG&A expenses |
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Unchanged |
$ |
1.95 to 2.0 billion |
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Non-GAAP effective tax rate |
Unchanged |
21% to 22% |
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