Vertex Pharmaceuticals Q2 2024 Update

Ticker: VRTX · Form: 10-Q · Filed: Aug 2, 2024 · CIK: 875320

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

Vertex Pharma's Q2 2024 10-Q is in. Financials look solid, check retained earnings.

AI Summary

Vertex Pharmaceuticals Inc. reported its financial results for the period ending June 30, 2024. The company's filing details its financial position and performance, with specific figures for various balance sheet items and income statement components for the first six months of 2024 and the comparable period in 2023. Key financial data points are presented for shareholders' equity and retained earnings.

Why It Matters

This 10-Q filing provides investors with a detailed look at Vertex Pharmaceuticals' financial health and operational performance during the second quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

Key Players & Entities

FAQ

What is the filing date for this 10-Q report?

The filing date for this 10-Q report is 20240802.

What is the fiscal year end for Vertex Pharmaceuticals Inc.?

The fiscal year end for Vertex Pharmaceuticals Inc. is 1231.

What is the Central Index Key for Vertex Pharmaceuticals Inc.?

The Central Index Key for Vertex Pharmaceuticals Inc. is 0000875320.

What is the SIC code for Vertex Pharmaceuticals Inc.?

The Standard Industrial Classification (SIC) code for Vertex Pharmaceuticals Inc. is 2834 (Pharmaceutical Preparations).

What period does this 10-Q filing cover?

This 10-Q filing covers the period of report ending 20240630.

Filing Stats: 4,642 words · 19 min read · ~15 pages · Grade level 7.7 · Accepted 2024-08-02 16:03:02

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements 2 Condensed Consolidated Financial Statements (unaudited) 2 Condensed Consolidated Statements of Income - Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Balance Sheets - June 30, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Shareholders' Equity - Three and Six Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 40 "Vertex," "we," "us," and "our" as used in this Quarterly Report on Form 10-Q refer to Vertex Pharmaceuticals Incorporated, a Massachusetts corporation, and its subsidiaries. "Vertex ," "KALYDECO ," "ORKAMBI ," "SYMDEKO ," "SYMKEVI ," "TRIKAFTA ," "KAFTRIO ," and CASGEVY" are registered trademarks of Vertex. Other brands, names and trademarks contained in this Quarterly Report on Form 10-Q are the property of their respective owners. We use the brand name for our products when we refer to the product that has been approved and with respect to the indications on the approved label. Otherwise, including in discussions of our development programs, we refer to our compounds and therapies by their scientific (or generic) name or VX developmental designation. Table of Contents

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements VERTEX PHARMACEUTICALS INCORPORATED Condensed Consolidated Statements of Income (in millions, except per share amounts)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Product revenues, net $ 2,645.6 $ 2,493.2 $ 5,336.2 $ 4,868.0 Costs and expenses: Cost of sales 371.9 308.6 714.5 575.5 Research and development expenses 966.6 785.7 1,755.7 1,528.3 Acquired in-process research and development expenses 4,449.1 110.5 4,525.9 457.6 Selling, general and administrative expenses 372.2 262.6 714.9 503.7 Change in fair value of contingent consideration 0.5 ( 0.6 ) 0.4 ( 2.5 ) Total costs and expenses 6,160.3 1,466.8 7,711.4 3,062.6 (Loss) income from operations ( 3,514.7 ) 1,026.4 ( 2,375.2 ) 1,805.4 Interest income 156.5 144.7 337.7 267.3 Interest expense ( 9.9 ) ( 11.2 ) ( 20.3 ) ( 22.6 ) Other (expense) income, net ( 23.1 ) 1.6 ( 54.3 ) 2.9 (Loss) income before provision for income taxes ( 3,391.2 ) 1,161.5 ( 2,112.1 ) 2,053.0 Provision for income taxes 202.4 245.8 381.9 437.5 Net (loss) income $ ( 3,593.6 ) $ 915.7 $ ( 2,494.0 ) $ 1,615.5 Net (loss) income per common share: Basic $ ( 13.92 ) $ 3.55 $ ( 9.66 ) $ 6.27 Diluted $ ( 13.92 ) $ 3.52 $ ( 9.66 ) $ 6.21 Shares used in per share calculations: Basic 258.1 257.7 258.1 257.6 Diluted 258.1 260.4 258.1 260.3 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 Table of Contents VERTEX PHARMACEUTICALS INCORPORATED Condensed Consolidated Statements of Comprehensive Income (in millions)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net (loss) income $ ( 3,593.6 ) $ 915.7 $ ( 2,494.0 ) $ 1,615.5 Other comprehensive income (loss): Unrealized holding losses on available-for-sale debt securities, net of tax of $ 1.5 , $ 4.3 , $ 6.9 and $ 3.5 , respectively ( 5.4 ) ( 15.5 ) ( 25.1 ) ( 12.6 ) Unrealized gains (losses) on foreign cur

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