Rising Costs Weigh on Vertex Q1 Earnings
Here's our initial take on Vertex Pharmaceuticals' (NASDAQ: VRTX) first-quarter financial report.Vertex's first-quarter financial results didn't keep up with what investors have gotten used to seeing in recent quarters. Revenue in Q1 rose just 3% year over year, partly because Vertex suffered a drop in sales in Russia due to intellectual property infringement. U.S. revenue was up 9% on strong pricing and the earliest stages of the launch of its new Alyftrek cystic fibrosis treatment. Except for Russia, Vertex saw strong demand in both established and newer markets.On the earnings front, several headwinds emerged. Adjusted earnings took a 15% hit as research and development expenses soared by roughly $190 million from year-ago levels. A 16% jump in overhead costs also weighed on the bottom line. Even worse was the fact that adjusted earnings excluded a $379 million asset impairment charge that stemmed from the decision not to advance Vertex's VX-264 program for patients with type 1 diabetes.Continue reading
Here's our initial take on Vertex Pharmaceuticals' (NASDAQ: VRTX) first-quarter financial report.
Vertex's first-quarter financial results didn't keep up with what investors have gotten used to seeing in recent quarters. Revenue in Q1 rose just 3% year over year, partly because Vertex suffered a drop in sales in Russia due to intellectual property infringement. U.S. revenue was up 9% on strong pricing and the earliest stages of the launch of its new Alyftrek cystic fibrosis treatment. Except for Russia, Vertex saw strong demand in both established and newer markets.
On the earnings front, several headwinds emerged. Adjusted earnings took a 15% hit as research and development expenses soared by roughly $190 million from year-ago levels. A 16% jump in overhead costs also weighed on the bottom line. Even worse was the fact that adjusted earnings excluded a $379 million asset impairment charge that stemmed from the decision not to advance Vertex's VX-264 program for patients with type 1 diabetes.
