Vertex Pharma (VRTX) Tops Q3 EPS by 22c, Beats on Revenues; Boosts FY17 Revenue Outlook
Vertex Pharma (NASDAQ: VRTX) reported Q3 EPS of $0.53, $0.22 better than the analyst estimate of $0.31. Revenue for the quarter came in at $550 million versus the consensus estimate of $520.13 million.
2017 Financial Guidance:
Vertex today increased its total 2017 CF product revenue guidance, including ORKAMBI and KALYDECO revenue guidance, and reiterated its combined GAAP and non-GAAP R&D and SG&A expense guidance:
- Total CF Product Revenues: Vertex now expects total 2017 CF product revenues of $2.10 to $2.15 billion, an increase from its previously announced guidance of $1.87 to $2.10 billion.
- ORKAMBI: The company now expects total 2017 product revenues for ORKAMBI of $1.29 to $1.32 billion, an increase from its previously announced guidance of $1.1 to $1.3 billion. The updated guidance reflects the strong underlying demand for ORKAMBI throughout the year among people with CF ages 6 and older in the U.S. and is based on estimates of potential revenues from countries where ORKAMBI is currently reimbursed. This guidance does not assume recognition of any ORKAMBI product revenues from France in 2017.
- KALYDECO: The company now expects total 2017 product revenues for KALYDECO of $810 to $830 million, an increase from its previously announced guidance of $770 to $800 million. The updated guidance reflects the rapid uptake among people with CF ages 2 and older in the U.S. who have certain residual function mutations, following recent label expansions for these patients.
- Combined Non-GAAP and GAAP R&D and SG&A Expenses: Vertex continues to expect that total 2017 combined GAAP R&D and SG&A expense will be in the range of $1.79 to $1.92 billion and combined non-GAAP R&D and SG&A expense will be in the range of $1.33 to $1.36 billion.
GUIDANCE:
Vertex Pharma sees FY2017 revenue of $2.1-2.5 billion, versus the consensus of $2.3 billion.
Revenues:
- Total CF net product revenues were $549.6 million compared to $409.7 million for the third quarter of 2016.
- Net product revenues from ORKAMBI were $336.2 million compared to $234.0 million for the third quarter of 2016. The increase in ORKAMBI revenues was driven by a number of factors, including the continued uptake in children with CF ages 6 to 11 in the U.S. and the addition of revenues from European countries where ORKAMBI is currently reimbursed.
- Net product revenues from KALYDECO were $213.5 million compared to $175.6 million for the third quarter of 2016. The increase in KALYDECO revenues was driven by the approval and uptake among people ages 2 and older in the U.S. who have certain residual function mutations.
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