"The Vanzacaftor Triple demonstrated an even greater reduction in sweat chloride than TRIKAFTA, a very high bar to have crested, and thus sets the stage for the potential to have a new standard in the treatment of CF." - Dr. Reshma Kewalramani
— Dr. Reshma Kewalramani
03Detailed Report
VRTX
Vertex Pharmaceuticals Incorporated
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
In Q2 2024, Vertex Pharmaceuticals reported revenues of $2.65 billion, reflecting a year-over-year growth of 6%. This performance was significantly driven by strong demand for TRIKAFTA and the early engagement in the launch of CASGEVI for sickle cell disease and beta-thalassemia treatments. Despite this, the company recorded a non-GAAP operating loss of $3.1 billion primarily attributable to a $4.4 billion charge related to the acquisition of Alpine Immune Sciences. Vertex management has increased its full-year revenue guidance to between $10.65 billion and $10.85 billion, highlighting confidence in both existing products and pipeline advancements. The upcoming launches, particularly the Vanzacaftor Triple and Suzetrigine, are anticipated to further diversify revenue streams and enhance future profitability.
Key Performance Indicators
Revenue
Increasing
2.63B
QoQ: -1.95% | YoY: 5.68%
Gross Profit
Increasing
2.26B
85.88% margin
QoQ: -3.49% | YoY: 3.58%
Operating Income
Decreasing
-3.53B
QoQ: -410.31% | YoY: -443.44%
Net Income
Decreasing
-3.59B
QoQ: -426.81% | YoY: -492.44%
EPS
Decreasing
-13.92
QoQ: -426.76% | YoY: -492.11%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Q2 2024 revenue was $2.65 billion, with a gross profit margin of 85.9%.
Year-over-Year Growth: Revenue increased by 6%, while operating income dropped dramatically due to increased R&D expenditures and one-time acquisition costs.
Cost Analysis: Operating expenses surged to $5.43 billion due to a $4.4 billion AIPR&D charge from the Alpine acquisition. R&D costs for Q2 were $697 million, consistently fueling pipeline development.
Net Income: The company faced a net loss of $3.59 billion and a diluted EPS of -$13.92, exacerbated by the acquisition charge.
Cash Flow: Vertex ended Q2 with $10.2 billion in cash and investments, reflecting a strong balance sheet despite a net cash outflow of $4.58 billion in operating cash flow, primarily due to the net income loss.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.63B
5.68%
-1.95%
Gross Profit
2.26B
3.58%
-3.49%
Operating Income
-3.53B
-443.44%
-410.31%
Net Income
-3.59B
-492.44%
-426.81%
EPS
-13.92
-492.11%
-426.76%
Key Financial Ratios
Gross Profit Margin
Excellent
85.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-1.34%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-1.36%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.18%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.24%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.52
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.06
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-8.46x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
8.23x
Very high premium suggests asset-light business model or lofty expectations
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