Vertex Pharmaceuticals reported lower-than-expected quarterly results, falling short of Wall Street estimates due to weaker sales of its cystic fibrosis drug Trikafta. The miss led to a 2.5% drop in the company’s stock during after-hours trading. Despite this, Vertex raised the lower end of its full-year revenue forecast, signaling confidence in its pipeline, especially with newer cystic fibrosis treatments and the recent launch of its acute pain medication Journavx. While Trikafta sales increased by 2% year-over-year to $2.53 billion in the first quarter, they failed to meet the $2.58 billion analysts had expected. This shortfall has attracted investor scrutiny, particularly as Vertex must now prove that Journavx can meaningfully contribute to revenue. The drug, launched in March, has already generated more than 20,000 prescriptions through mid-April. Analysts like Evan Seigerman from BMO Capital Markets consider this a strong start, though they caution that meaningful revenue generation remains to be demonstrated. The company is also looking to expand its market lead with its newly approved next-generation cystic fibrosis treatment, Alyftrek, a once-daily medication designed for a rare and progressive genetic disorder. Approved by the U.S. FDA in December, Alyftrek bolsters Vertex’s already dominant position in CF care. In parallel, the company is advancing its innovative gene therapy Casgevy, which is used to treat a rare blood disorder characterized by the need for frequent blood transfusions. To date, over 90 patients have initiated cell collection for this therapy at more than 65 authorized centers around the world. For the first quarter ended March 31, total revenue climbed 2.7% to $2.77 billion, yet still came in below analyst expectations of $2.85 billion. On an adjusted basis, Vertex posted earnings of $4.06 per share, missing the projected $4.32 per share. Nonetheless, the company lifted its 2025 revenue guidance slightly, forecasting between $11.85 billion and $12 billion, compared to its prior range of $11.75 billion to $12 billion. As Vertex continues to expand its product offerings and invest in next-generation therapies, its ability to execute on new drug launches like Journavx and Alyftrek will be critical to sustaining long-term growth in an increasingly competitive biotech landscape.
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