Vertex Pharmaceuticals has numerous drugs up for significant milestones this year and next, an analyst said Wednesday. And VRTX stock popped on its beat and raise.
Early next year, Vertex expects to have the results of three final-phase studies of a next-generation cystic fibrosis treatment, Piper Sandler analyst Christopher Raymond said.
Further, he expects the company to wrap several studies of a pain drug this year. A Phase 2 study of a kidney disease drug is also due to this year. And Vertex will also likely have data from its type 1 diabetes program at a fall meeting.
Importantly, the Food and Drug Administration is also considering approving Vertex's gene-editing drug developed with Crispr Therapeutics in sickle cell disease and beta thalassemia. As expected, the agency plans to hold an advisory committee ahead of the potential approvals.
"Hard to find a busier catalyst schedule in all of biotech," Raymond said in a note to clients. "There is no shortage of milestones over the next 12 months."
On today's stock market, VRTX stock jumped 3.1% to 358.40.
VRTX Stock: Cystic Fibrosis Remains Key
Vertex continued to flex its muscles in cystic fibrosis treatment in the second quarter.
Trikafta is Vertex's triple-drug regimen to treat cystic fibrosis. It can treat nine in 10 people afflicted with the inherited lung disease.Trikafta generated $2.24 billion in second-quarter sales, accounting for nearly 90% of total sales. Older cystic fibrosis products brought in a collective $252.2 million in sales.
Trikafta sales topped expectations, though revenue from older products came in light, to in-line with Street estimates, RBC Capital Markets analyst Brian Abrahams said in a note to clients. On a year-over-year basis, Trikafta sales climbed 18% while sales of the company's older drugs fell 17%.
"Consistency of high-quality beats and raises coupled with pipeline catalysts has continued to make Vertex an attractive story for many biotech investors, especially given few long-term headwinds faced by others," he said. "That being said, we believe the stock already reflects a premium for these attributes and see a balanced reward/risk into the upcoming pipeline events and launches."
Abrahams has a sector perform rating on VRTX stock, but raised his price target to 343 from 325.
$12.6 Billion In Cash, Equivalents
Total revenue grew 13.5% to $2.49 billion, beating expectations for $2.42 billion. Vertex also earned $3.89 per share during the quarter, up 8% and above calls for $3.86, according to FactSet. Vertex ended the quarter with $12.6 billion in cash, equivalents and marketable securities.
For the year, Vertex raised its sales outlook to $9.7 billion to $9.8 billion. VRTX stock analysts had predicted adjusted earnings of $14.56 per share and $9.76 billion in sales.
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