Vertex Pharmaceuticals (VRTX) handily beat Wall Street’s third-quarter forecasts late Tuesday on double-digit growth for its three-drug cystic fibrosis treatment — leading VRTX stock to pop.
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The triple-regimen — called Trikafta in the U.S. and Kaftrio abroad — led growth during the third quarter. Trikafta sales rocketed 62% to $1.56 billion. Those sales also accounted for more than three-quarters of total sales in the quarter.
Based on the strong growth, Vertex also raised its full-year product growth. Many patients are moving to Trikafta treatment from older Vertex medicines.
In after-hours trading on the stock market today, VRTX stock advanced 2.5% near 186.
VRTX Stock: Trikafta Cannibalization Continues
During the third quarter, Vertex generated adjusted profit of $3.56 per share on $1.98 billion in sales. Earnings surged 35% and beat forecasts for $3.09 per share. Sales rocketed 29% and were also ahead of expectations for $1.86 billion, according to FactSet.
Trikafta can treat most cystic fibrosis patients, so it’s cannibalizing its predecessors’ sales. Symdeko revenue toppled 48% to $81 million. Orkambi and Kalydeco brought in a respective $185 million and $162 million. Orkambi sales tumbled 18% and Kalydeco sales fell about 16.5%.
Vertex raised its full-year product sales estimate to $7.4 billion to $7.5 billion. That’s up $15 million at the midpoint. VRTX stock analysts projected $7.31 billion in total revenue, which also accounts for revenue from collaborations and other agreements.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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