Latest news with #JOURNAVX
Yahoo
09-05-2025
- Business
- Yahoo
Unpacking Q1 Earnings: Vertex Pharmaceuticals (NASDAQ:VRTX) In The Context Of Other Therapeutics Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how therapeutics stocks fared in Q1, starting with Vertex Pharmaceuticals (NASDAQ:VRTX). Over the next few years, therapeutic companies, which develop a wide variety of treatments for diseases and disorders, face strong tailwinds from advancements in precision medicine (including the use of AI to improve hit rates) and growing demand for treatments targeting rare diseases. However, headwinds such as rising scrutiny over drug pricing, regulatory unknowns, and competition from larger, more resourced pharmaceutical companies could weigh on growth. The 10 therapeutics stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 1.2%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results. Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management. Vertex Pharmaceuticals reported revenues of $2.77 billion, up 3% year on year. This print fell short of analysts' expectations by 2.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts' EPS estimates and full-year revenue guidance slightly missing analysts' expectations. 'Vertex delivered a strong start to 2025 with notable execution across the business as we grow and diversify the revenue base, progress multiple launches and advance the R&D pipeline. We continued to expand our leadership in CF and build global momentum for CASGEVY, and we launched JOURNAVX in moderate-to-severe acute pain,' said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex. Unsurprisingly, the stock is down 14.1% since reporting and currently trades at $429.37. Read our full report on Vertex Pharmaceuticals here, it's free. Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments. United Therapeutics reported revenues of $794.4 million, up 17.2% year on year, outperforming analysts' expectations by 5.6%. The business had an exceptional quarter with an impressive beat of analysts' EPS estimates. The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $308. Is now the time to buy United Therapeutics? Access our full analysis of the earnings results here, it's free. Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health. Myriad Genetics reported revenues of $195.9 million, down 3.1% year on year, falling short of analysts' expectations by 2.3%. It was a softer quarter as it posted full-year revenue guidance missing analysts' expectations. As expected, the stock is down 44.7% since the results and currently trades at $4.01. Read our full analysis of Myriad Genetics's results here. Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases. Moderna reported revenues of $108 million, down 35.3% year on year. This result lagged analysts' expectations by 8.4%. It was a softer quarter as it also produced full-year revenue guidance missing analysts' expectations. Moderna had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 14.5% since reporting and currently trades at $24.44. Read our full, actionable report on Moderna here, it's free. Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE:ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions. AbbVie reported revenues of $13.34 billion, up 8.4% year on year. This number surpassed analysts' expectations by 3.3%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts' constant currency revenue estimates and a decent beat of analysts' EPS estimates. The stock is up 3% since reporting and currently trades at $185.99. Read our full, actionable report on AbbVie here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
06-05-2025
- Business
- Yahoo
Why Did Vertex Pharmaceuticals Stock Fall On Tuesday?
On Monday, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported lower-than-expected first-quarter 2025 earnings. Vertex reported first-quarter adjusted earnings per share of $4.06, down from $4.76 a year ago, missing the consensus of $4.32. The cystic fibrosis-focused company reported sales of $2.77 billion, missing the consensus of $2.85 billion. Total revenue increased by 3%, primarily driven by the continued performance of Trikafta/Kaftrio and an early contribution from the U.S. launch of Alyftrek. In the U.S., total revenue increased 9% to $1.66 billion due to continued strong patient demand and higher net realized pricing. Outside the U.S., total revenue decreased 5% to $1.11 billion, as strong patient demand in established and newer markets was offset by the expected revenue decline in Russia, where Vertex is experiencing a violation of its intellectual property rights. Also Read: Vertex Discontinues Development Of Type 1 Diabetes Candidate After Disappointing Data 'Vertex delivered a strong start to 2025 with notable execution across the business as we grow and diversify the revenue base, progress multiple launches and advance the R&D pipeline. We continued to expand our leadership in CF and build global momentum for CASGEVY, and we launched JOURNAVX in moderate-to-severe acute pain,' said Reshma Kewalramani, CEO and President of Vertex. 'With multiple programs in pivotal development including povetacicept, which continues to make rapid progress in achieving its potential as a pipeline-in-a-product, and additional programs in early and mid-stage development, Vertex is poised to continue to deliver value for years to come.' Guidance: Vertex raised the low end of total revenue guidance by $100 million to $11.85 billion-$12 billion from $11.75 billion-$12 billion, compared to the consensus of $11.97 billion. The guidance also includes an immaterial cost impact from tariffs in 2025 based on currently known tariff rates and regulations. Vertex has temporarily paused the multiple ascending dose portion of the Phase 1/2 study of VX-522, a nebulized CFTR mRNA therapy, to assess a tolerability issue. William Blair writes, 'While the pause is unfortunate, we believe that the decision to pause the study rather than discontinue it suggests that, beyond the tolerability issue, management is encouraged by the data generated to date given it is open-label.' Analyst Myles Minter writes, 'While there was a slight miss on the top line leading to shares trading off 3% in the aftermarket, management raised the lower end of total revenue guidance, suggesting Street estimates may not have fully encompassed the previously disclosed impacts of an unauthorized Trikafta copy in Russia. We would be buyers on weakness here as the CF franchise still represents one of the most stable long-term growth franchises with a competitive moat in the biotech sector.'
Yahoo
06-05-2025
- Business
- Yahoo
Vertex Pharmaceuticals (NasdaqGS:VRTX) Raises Guidance Despite Intangible Asset Impairment Charge
Vertex Pharmaceuticals recently reported a decline in net income and EPS for Q1 2025, despite a rise in revenue, which was accompanied by a large $379 million impairment charge related to its diabetes treatment program. Additionally, the company increased its full-year revenue guidance. Over the past month, Vertex's stock price moved up 5%, aligning it with broader market trends. The market's recovery, despite recent fluctuations and investors' awaiting clarity on tariffs and the Fed's decisions, may have provided an uplifting backdrop, while regulatory approvals and legal challenges added nuanced weight to its overall performance. Buy, Hold or Sell Vertex Pharmaceuticals? View our complete analysis and fair value estimate and you decide. NasdaqGS:VRTX Revenue & Expenses Breakdown as at May 2025 Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. Following the recent earnings report from Vertex Pharmaceuticals, the company's financial narrative has taken a nuanced turn. While the impairment charge on its diabetes program marks a significant hurdle, the increased full-year revenue guidance offers a glimpse of optimism. The global launch of ALYFTREK and the approval of JOURNAVX may bolster revenue potential, yet cost pressures and leadership changes could pose challenges to profitability. Over the past three years, Vertex's total returns, incorporating both share price movement and dividends, surged very significantly, reflecting a positive investor sentiment beyond short-term fluctuations. This contrasts with the 1.19% increase seen in the broader US biotech industry over the past year. Vertex's one-year return has significantly surpassed the broader US market, which showed an 8.2% uptick over the same period, suggesting resilience in a competitive sector landscape. The main implications of recent news may impact revenue expectations, as new product approvals aim for revenue diversification and market penetration. Earnings forecasts remain sensitive to strategic execution and regulatory outcomes. Presently, Vertex's share price still trades at a slight discount to its consensus analyst price target of US$500.32, reflecting a cautious yet optimistic investor outlook. The potential upside to the bullish price target of US$617.00 could materialize if revenue and earnings estimates align with favorable market dynamics and execution. Click to explore a detailed breakdown of our findings in Vertex Pharmaceuticals' financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
06-05-2025
- Business
- Yahoo
Vertex Pharmaceuticals Stock Sinks as Costs Soar
Cheng Xin / Getty Images Key Takeaways Vertex Pharmaceuticals missed first-quarter profit and revenue forecasts as costs jumped. The biotech firm also posted a decline in sales outside the U.S. because of intellectual property rights violations in Russia. Vertex raised the lower end of its 2025 guidance as it sees higher demand for its cystic fibrosis treatments. Shares of Vertex Pharmaceuticals (VRTX) slumped 12% Tuesday, a day after the biotech firm reported worse-than-expected results as costs increased. Vertex posted first-quarter adjusted earnings per share of $4.06, with revenue rising 3% year-over-year to $2.77 billion. Analysts surveyed by Visible Alpha were looking for $4.19 and $2.83 billion, respectively. U.S. revenue grew 9% to $1.66 billion in part because of higher prices. However, outside the U.S. revenue dropped 5% to $1.11 billion because of a decline in sales in Russia, where the company said it is "experiencing violation of its intellectual property rights." Total expenses skyrocketed nearly 40% to $2.14 billion, which Vertex blamed mostly on "continued R&D investment in support of multiple mid- and late-stage clinical development programs and increased commercial investment to support the launch of JOURNAVX," its non-opioid pain medicine. In addition, it also had a $379.0 million intangible asset impairment charge associated with its experimental diabetes treatment VX-264, which it won't be advancing for additional clinical development. Vertex raised the low end of its full-year revenue guidance to $11.85 billion from $11.75 billion as it sees continued growth in demand for its cystic fibrosis drugs, including the recently launched Alyftrek. The company did not change its upper end outlook of $12.0 billion. Even with today's slide, shares of Vertex Pharmaceuticals are up almost 10% in 2025. TradingView Read the original article on Investopedia
Yahoo
05-05-2025
- Business
- Yahoo
Vertex Pharmaceuticals (NASDAQ:VRTX) Reports Sales Below Analyst Estimates In Q1 Earnings
Biotech company Vertex Pharmaceuticals (NASDAQ:VRTX) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 3% year on year to $2.77 billion. The company's full-year revenue guidance of $11.88 billion at the midpoint came in 0.9% below analysts' estimates. Its non-GAAP profit of $4.06 per share was 5.4% below analysts' consensus estimates. Is now the time to buy Vertex Pharmaceuticals? Find out in our full research report. Revenue: $2.77 billion vs analyst estimates of $2.83 billion (3% year-on-year growth, 2.3% miss) Adjusted EPS: $4.06 vs analyst expectations of $4.29 (5.4% miss) Adjusted Operating Income: $1.18 billion vs analyst estimates of $1.30 billion (42.7% margin, 9.1% miss) The company reconfirmed its revenue guidance for the full year of $11.88 billion at the midpoint Operating Margin: 22.7%, down from 42.4% in the same quarter last year Market Capitalization: $128.8 billion 'Vertex delivered a strong start to 2025 with notable execution across the business as we grow and diversify the revenue base, progress multiple launches and advance the R&D pipeline. We continued to expand our leadership in CF and build global momentum for CASGEVY, and we launched JOURNAVX in moderate-to-severe acute pain,' said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex. Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Vertex Pharmaceuticals grew its sales at an impressive 18.2% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Vertex Pharmaceuticals's annualized revenue growth of 9.8% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, Vertex Pharmaceuticals's revenue grew by 3% year on year to $2.77 billion, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 9.2% over the next 12 months, similar to its two-year rate. This projection is particularly noteworthy for a company of its scale and suggests the market sees success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes. Vertex Pharmaceuticals has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average adjusted operating margin of 40.1%. Looking at the trend in its profitability, Vertex Pharmaceuticals's adjusted operating margin decreased by 51.5 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 44.3 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, Vertex Pharmaceuticals generated an adjusted operating profit margin of 42.7%, down 7 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Vertex Pharmaceuticals, its EPS declined by 15.6% annually over the last five years while its revenue grew by 18.2%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. We can take a deeper look into Vertex Pharmaceuticals's earnings to better understand the drivers of its performance. As we mentioned earlier, Vertex Pharmaceuticals's adjusted operating margin declined by 51.5 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Vertex Pharmaceuticals reported EPS at $4.06, down from $4.76 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Vertex Pharmaceuticals's full-year EPS of negative $0.41 will flip to positive $18.55. We struggled to find many positives in these results as its revenue, EPS, and adjusted operating income fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 2.6% to $487 immediately after reporting. The latest quarter from Vertex Pharmaceuticals's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
