Vertex Pharmaceuticals fulfilled expectations for a guidance raise and VRTX stock edged higher Friday.
The company boosted its full-year sales outlook by $200 million. It now expects $8.6 billion to $8.8 billion in sales of its cystic fibrosis, or CF, medicines. That was largely in line with predictions and follows a second-quarter beat, RBC Capital Markets analyst Brian Abrahams said in a report to clients.
"As expected, given recent favorable trends on ex-U.S. reimbursement and expansion into younger CF patients, Vertex raised their CF sales guidance," he said. "We believe a $200 million raise is about the order of magnitude the Street was looking for."
On today's stock market, VRTX stock advanced 4.8% to 288.03.
VRTX Stock: Sales Ratchet Higher
Overall, second-quarter earnings came in at $3.60 a share vs. expectations for $3.47, minus some items. Adjusted income climbed year over year. Sales jumped 22% to $2.2 billion. That beat the average estimate of analysts polled by FactSet for $2.13 billion.
Trikafta, Vertex's biggest moneymaker, generated $1.89 billion in sales, rocketing 51%. Analysts called for $1.81 billion to $1.86 billion, according to various analysts' reports. Needham analyst Joseph Stringer noted Trikafta is growing through the addition of patients age 6-11.
This demonstrates "the continued solid market position in CF," RBC's Abrahams said. Though, he noted, another cystic fibrosis treatment from Vertex, called Orkambi, came in below forecasts. It's likely Orkambi patients are switching to Trikafta, however. Trikafta can treat 90% of patients with the lung disease.
Abrahams kept his sector perform and 269 price target on VRTX stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
