Vertex Pharmaceuticals Incorporated Q1 FY2026 earnings call

Reshma highlighted strong Q1 revenue growth, key commercial milestones for newer products, and strong R&D execution. In CF, label expansions for AlifTrack and TRIKAFTA, progress on next-gen CFTR programs, and discontinuation of VX-522. In renal franchise, Povi showed strong interim analysis results in IgAN, enrollment completed in Phase II of Povi in primary membranous nephropathy, Phase II proof-of-concept study in myasthenia gravis underway, and progress on enaxaplin in AMKD. Duncan provided commercial updates, noting 6% global growth, AlifTrack's global revenue and reimbursement progress, KASJEVY's patient initiation and revenue, GERNAVICS' prescription and revenue trends, and plans for renal business launch.

Total product revenue was $2.99 billion, up 8% year over year. AlifTrack exceeded $1 billion in cumulative revenue. KASJEVY had over 500 people initiate treatment and over 1 million prescriptions for Jernabix. Products from new disease areas like KASJEVY and GERNAVICS drove ~25% of total product revenue growth. CF revenue grew 6% year over year. KASJEVY had $43 million in Q1 revenue, GERNAVICS had $29 million in Q1 revenue.

Reiterating 2026 total revenue guidance of $12.95 billion to $13.10 billion, growth of 8% to 9%. Confident in non-CF products revenue of $500 million or more, driven by KASJEVY infusions and GERNAVICS ramp. Full-year gross margin expected just under 86%. Combined non-GAAP operating expense guidance $5.65 billion to $5.75 billion. Non-GAAP effective tax rate expected 19.5%–20.5% for full year 2026. No material impact from tariffs in 2026.

Forward-looking statements subject to risks and uncertainties discussed in press release and SEC filings. VX-522 program discontinued due to tolerability issues. Potential impact of competition and regulatory approvals on product launches and revenue.

Q: Jessica Fye asked about renal vision and greatest long-term revenue potential.

A: Reshma discussed renal diseases as common rare diseases with large patient pools and Povi's promising results.

Q: Salveen Richter asked about read-through from MACE's data to enaxaplin program.

A: Reshma noted Vertex's results in enaxaplin and early decision to not mix heterogeneous groups.

Q: Brian Abrahams asked about convincing KOLs and community physicians of povitacicept's differentiation.

A: Duncan talked about povitacicept's clinical effects, tolerability, dosing, and commercial capabilities.

Q: Geoffrey Meacham asked about IV modality for Gernavix and Povi's basket study.

A: Reshma discussed IV modality interest and basket study potential.

Q: Cory Kasimov asked about needed benefit in enaxaplin's AMPLIFIED population.

A: Reshma said double-digit improvement in proteinuria on top of standard care.

Q: Michael Yee asked about Povi's efficacy vs Otsuka and safety on hypogammaglobulinemia.

A: Reshma talked about Povi's favorable safety profile on infections and efficacy focus on proteinuria.

Q: Tazeen Ahmad asked about read-through from IgAN study to PMN study and CF pipeline data.

A: Reshma discussed positive impact on PMN study and CF pipeline data on sweat chloride.

Q: Evan Seigerman asked about VX-522 tolerability issues and future technologies.

A: Reshma discussed lung inflammation tolerability issue and future nucleic acid therapy work.

Q: David Risinger asked about reconciling GERNAVICS revenue and PBM coverage.

A: Duncan talked about Q1 revenue context and PBM coverage progress.

Q: Terence Flynn asked about FSGS patients in enaxaplin trial and AlifTrack patient mix.

A: Reshma guessed FSGS patients in enaxaplin trial and Duncan discussed AlifTrack patient mix.

Q: Analyst asked about 828 bar and cystic fibrosis landscape.

A: Reshma talked about 828's special efficacy/safety bar and cystic fibrosis landscape