Please ensure Javascript is enabled for purposes of website accessibility

Vertex Pharmaceuticals Reports Q4 Financial Earnings, Beats Estimates

By Mark Prvulovic - Jan 30, 2020 at 6:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company outperformed Wall Street expectations thanks to strong results from Trikafta.

Vertex Pharmaceuticals (VRTX 0.51%) announced its fourth-quarter financial results on Thursday afternoon, which were above analyst expectations. For the three months ending on Dec. 31, Vertex reported $1.4 billion in product revenues, which was substantially above the $868 million reported in Q4 2018. In comparison, analysts were expecting only $1.0 billion in Q4 2019 revenues.

In terms of specific drug sales, Trikafta was Vertex's best-selling product this quarter, accounting for $420 million in revenue. Approved in October 2019 as a treatment for cystic fibrosis, Trikafta was seen as the next potential blockbuster drug for Vertex. The drug costs approximately $311,000 for a year's worth of treatment.

Abstract picture of a green stock market chart with an arrow going up.

Image source: Getty Images.

Other key drug sales include the biotech company's other cystic fibrosis treatments. Symdeko/Symkevi, which brought in $332 million in revenue, is up 12.9% from last year, while Orkambi generated $270 million, a 14.3% decrease from the same period in 2018. The last cystic fibrosis drug, Kalydeco, also saw revenues fall by 8.9% over the past 12 months, generating just $236 million.

Further details

Trikafta is Vertex's newest cystic fibrosis treatment, and while sales in the company's other drugs are expected to fall a bit, the increase in Trikafta sales is predicted to make up for it.

Net income came in at $583.2 million, while the company's earnings-per-share (EPS) was reported at $2.23, a significant improvement from the $1.21 EPS expected by analysts. Vertex expects revenues for 2020 to come in somewhere between $5.1 billion to $5.3 billion, a sizable increase from 2019's $4.16 billion revenue figure.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vertex Pharmaceuticals Incorporated Stock Quote
Vertex Pharmaceuticals Incorporated
VRTX
$281.79 (0.51%) $1.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.