Vertex Pharmaceuticals’ second quarter 2025 results exceeded Wall Street’s expectations, but the market responded sharply negatively. Management pointed to strong commercial execution in its cystic fibrosis franchise, growing uptake of new therapies like ALYFTREK and JOURNAVX, and expanding momentum for CASGEVY in sickle cell disease and beta thalassemia. CEO Reshma Kewalramani highlighted that “momentum accelerated, and we executed with very strong performance across the board, growing and diversifying revenue with multiple new product launches.” Despite these operational highlights, the market’s reaction suggests investors were focused on other concerns not fully addressed during the quarter.
Is now the time to buy VRTX? Find out in our full research report (it’s free).
Vertex Pharmaceuticals (VRTX) Q2 CY2025 Highlights:
- Revenue: $2.96 billion vs analyst estimates of $2.90 billion (12.1% year-on-year growth, 2.1% beat)
- Adjusted EPS: $4.52 vs analyst estimates of $4.25 (6.3% beat)
- Adjusted EBITDA: $1.38 billion vs analyst estimates of $1.34 billion (46.4% margin, 3.1% beat)
- The company slightly lifted its revenue guidance for the full year to $11.93 billion at the midpoint from $11.88 billion
- Operating Margin: 38.8%, up from -133% in the same quarter last year
- Market Capitalization: $99.42 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vertex Pharmaceuticals’s Q2 Earnings Call
• Jessica Fye (JPMorgan) pressed on whether increased JOURNAVX commercial spend was planned or reactive; CEO Reshma Kewalramani and CCO Duncan McKechnie said it was a strategic response to positive coverage and prescriber feedback, affirming field support would remain within specialty models.
• Salveen Richter (Goldman Sachs) questioned the loss of a broad PNP label for suzetrigine and future label expansion; Kewalramani explained FDA feedback limited the initial scope to DPN, but Vertex intends to broaden indications through further studies and discussions.
• Eliana Merle (UBS) asked about real-world evidence generation and impact on JOURNAVX formulary placement; Kewalramani cited ongoing Phase IV studies and rapid adoption at large health systems, while McKechnie explained the planned retirement of patient support programs as coverage grows.
• Tazeen Ahmad (BofA) inquired about the launch strategy for povetacicept in IgAN and rationale for prioritizing generalized myasthenia gravis; Kewalramani confirmed an auto-injector launch is planned for IgAN and outlined high unmet need, class data, and best-in-class properties as drivers for gMG prioritization.
• William Pickering (Bernstein) asked about JOURNAVX’s status under the NOPAIN Act and CASGEVY’s cell collection to infusion cycle; Kewalramani expects regulatory clarification for JOURNAVX inclusion and noted cycle times for CASGEVY remain at 4–5 months, with plans to improve as the process matures.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the rate at which patients transition to ALYFTREK and the pace of global reimbursement wins, (2) continued JOURNAVX payer and hospital formulary adoption alongside normalization of gross-to-net margins, and (3) progress in late-stage pipeline enrollment and regulatory milestones, particularly for CASGEVY and povetacicept. Execution on these fronts will be critical to Vertex’s ability to sustain revenue growth and diversify its portfolio.
Vertex Pharmaceuticals currently trades at $391, down from $470.60 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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