Vertex Pharmaceuticals Incorporated Q3 FY2025 earnings call

CF Franchise

• ALYFTREK, the fifth CFTR modulator, has strong uptake in the US with rapid adoption in naive and previously treated patients, and is launching well in Europe. It offers once-daily dosing, additional rare mutation coverage, and improved sweat chloride levels.

Pain

• In acute pain, JOURNAVX completed enrollment in Phase IV trials, showing safety and efficacy with substantial opioid reduction. In neuropathic pain, the first DPN Phase III study is ongoing, and the second is set to start soon.

Kidney Portfolio

• VX-407 for ADPKD initiated a Phase II proof-of-concept study. Inaxaplin for AMKD completed enrollment in a pivotal study. Pove for IgAN completed full enrollment in the RAINIER Phase 3 trial, with BLA submission planned for early 2026, and a pivotal study for primary membranous nephropathy was initiated.

Vertex achieved $3.08 billion in revenue in Q3 2025, showing double-digit growth compared to Q3 2024. The CF franchise saw strong growth with the ongoing launch of ALYFTREK and expansion into new geographies. CASGEVY contributed over $100 million in revenue for the year. JOURNAVX experienced growing prescription volumes in the acute pain segment. The renal medicine portfolio features innovative therapies in development, with programs like VX-407 for ADPKD and pove for IgAN in advanced stages.

2025 total revenue is projected to be in the range of $11.9 billion to $12 billion, up from prior guidance, reflecting growth from CF medicines, CASGEVY, and JOURNAVX. Operating expenses are expected to be $5 billion to $5.1 billion, higher than prior guidance due to acceleration in pove development and JOURNAVX marketing. The full year non-GAAP effective tax rate is revised to a range of 17% to 18% from 20.5% to 21.5%.

Potential material impact from dynamic tariff situations, including sector-specific tariffs, which could affect financial outcomes as the tariff landscape is subject to change.

Q: Update on ALYFTREK patient switching and monitoring requirements?

A: The vast majority of newly eligible US patients have started on ALYFTREK, transitions from TRIKAFTA are steady, and monitoring requirements are being navigated.

Q: Differentiation of pove vs other BAFF/APRIL assets?

A: Pove has best-in-class potential with specific engineering for the disease, once-monthly auto-injector dosing at a low volume, and favorable clinical data showing reductions in proteinuria and hematuria.