Vertex (VRTX) Q3 2026 Earnings Call Transcript

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DATE

Mon, Nov. 2, 2026

CALL PARTICIPANTS

• Chief Executive Officer and President – Reshma Kewalramani
• Chief Operating Officer and Chief Financial Officer – Charles Wagner
• Chief Commercial Officer – Duncan McKechnie
• Senior Vice President of Relations – Susie Lisa

TAKEAWAYS

• Total Revenue — $3.44 billion, growing 12% driven by cystic fibrosis product performance and revenue from newer products.
• FY 2026 Revenue Guidance — $13.15 billion to $13.25 billion, representing an increase from the prior range of $13.1 billion to $13.2 billion.
• CASGEVY Revenue — $99 million, representing 30% sequential growth and nearly six times the revenue from the third quarter of 2025.
• JOURNAVX Revenue — $58 million, an 18% increase from the second quarter of 2026.
• JOURNAVX Prescriptions — 750,000, reflecting more than 40% sequential growth over the prior quarter.
• ALYFTREK Revenue — $706 million, with U.S. sales for the therapy surpassing $1 billion on a year-to-date basis.
• PALSONIFY Revenue — $10 million for the month of September, contributing to a total quarterly performance of $24 million.
• Non-GAAP Operating Expense Guidance — approximately $6 billion for the full year, updated to include $250 million in costs for the Crinetics acquisition.
• Cash and Marketable Securities — $9.8 billion as of Sept. 30, following the $9.0 billion net cash acquisition of Crinetics.
• Share Repurchases — $120 million deployed to repurchase 250,000 shares during the third quarter.
• Non-GAAP Gross Margin — 85.6%, which excludes intangible asset and inventory step-up amortization from the Crinetics transaction.
• Non-GAAP R&D Expense — $936 million, a 9% increase year over year primarily attributable to the Crinetics integration.
• Non-GAAP SG&A Expense — $556 million, up 51% due to commercial build-out for the renal, acute pain, and acromegaly franchises.
• Interest Income Impact — projected to be $60 million lower for the full year 2026 because of lower cash balances following the acquisition.
• PALSONIFY FY 2026 Guidance — $40 million to $50 million in revenue expected for the four months following the close of the Crinetics acquisition.
• Combined Non-CF Product Revenue Guidance — $500 million or greater expected from CASGEVY and JOURNAVX for the full year.
• Foreign Exchange Benefit — approximately 150 basis points expected to benefit full-year revenue growth.
• CASGEVY Patient Progress — approximately 200 infusions completed since launch and more than 750 initiations worldwide.
• Acquisition Financing — $4.5 billion raised in term loans to fund the Crinetics acquisition, currently bearing interest at approximately 4.8%.
• Non-GAAP Net Income — $1.21 billion for the quarter, or $4.76 per diluted share.

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RISKS

• McKechnie reported that “gross to net and revenue were both affected by the onetime impact of securing broad Medicare Part d access,” which resulted in a reset in net revenue for JOURNAVX.
• Wagner noted that “interest income is projected to be approximately $60 million lower than it otherwise would have been as a result of lower cash balances after the acquisition.”

SUMMARY

Vertex Pharmaceuticals Incorporated (VRTX -1.02%) reported a 12% revenue increase for the third quarter and raised its full-year revenue guidance to a range of $13.15 billion to $13.25 billion. Management noted that growth was balanced between the domestic and international cystic fibrosis franchises and new contributions from the heme, pain, and rare endocrine portfolios. The company established its fourth commercial pillar through the $9.0 billion net cash acquisition of Crinetics Pharmaceuticals and is preparing to launch a fifth in renal medicine following the upcoming Nov. 30 PDUFA date for povitacept. Non-GAAP operating expense guidance was revised to approximately $6 billion to support the integration of Crinetics and the commercial scale-up of recent product launches.

• McKechnie stated that JOURNAVX “is now the number 1 prescribed branded oral analgesic in the US,” following a 40% sequential increase in prescriptions.
• The company is prioritizing the VX-017 islet cell therapy in type 1 diabetes because it is designed for all blood types, which Kewalramani noted “doubles the eligible patient population to about 120 thousand people.”
• Management completed full enrollment in the pivotal AMPLITUDE Phase 2/3 trial for inaxaplin and expects to share interim analysis results in early 2027.
• Vertex extended its patient support program for JOURNAVX into 2027 to facilitate access for patients without current payer coverage.
• Kewalramani reported that the next-generation 3.0 CFTR corrector VX-828 triple combination delivered a 9.4 millimole reduction in sweat chloride through 28 days of treatment in a study of eight patients.
• The company intends to wait for proof-of-concept data from all three next-generation 3.0 programs before selecting a regimen to advance into pivotal development.

INDUSTRY GLOSSARY

• CFTR: Cystic fibrosis transmembrane conductance regulator, a protein that regulates the flow of salt and water in and out of cells.
• IgAN: IgA nephropathy, a chronic kidney disease caused by the buildup of immunoglobulin A in the kidneys.
• SST2: Somatostatin receptor type 2, the primary target for treating acromegaly with oral agonists like Palsonify.
• AMKD: APOL1-mediated kidney disease, a genetic condition causing rapid decline in kidney function.
• BAFF: B-cell activating factor, a cytokine that promotes the survival and maturation of B cells.
• APRIL: A proliferation-inducing ligand, a protein that plays a role in B-cell development and autoimmune diseases.
• PDUFA: Prescription Drug User Fee Act, the date by which the FDA must complete its review of a drug application.
• eGFR: Estimated glomerular filtration rate, a measure used to assess how well the kidneys are filtering waste from the blood.
• UACR: Urine albumin to creatinine ratio, a marker used to identify and monitor kidney damage.

Full Conference Call Transcript

Operator: Good day and welcome to the Vertex Pharmaceuticals Third Quarter 26 Earnings Call. All participants will be in a listen only mode. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your touch tone phone. And to withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Ms. Susie Lisa. Please go ahead.

Susie Lisa: Evening, all. My name is Susie Lisa, and as the senior vice president of relations, it is my pleasure to welcome you to our third quarter 26 financial results conference call. On tonight’s call, making prepared remarks, we have Dr. Reshma Kewalr

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