Vertex Pharmaceuticals Overview
Vertex is the world's dominant cystic fibrosis franchise owner and, increasingly, a diversified specialty biotechnology platform. Its economic engine is a near-monopoly in CFTR modulation — five approved medicines treating roughly 95 percent of people with CF in core markets, generating over $11.1 billion of FY2025 revenue at 86 percent gross margin and effectively no branded competition until the late 2030s. Around that annuity, management has assembled four additional growth pillars: hematology (CASGEVY, the first approved CRISPR/Cas9 therapy), acute pain (JOURNAVX, the first new non-opioid analgesic mechanism in decades), nephrology (povetacicept, PDUFA 30 November 2026; inaxaplin behind it), and — following the $10.0 billion Crinetics acquisition completed 1 September 2026 — rare endocrinology. Vertex is unusual among large-cap biotechs in combining double-digit organic revenue growth, 40 percent-plus non-GAAP operating margins, a net cash balance sheet, and no dividend. The central investment question is whether the non-CF pillars scale before CF growth mathematically decelerates.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Employees (approx., headcount) | 5,000 | 5,800 | 6,400 |
FY2025 is verified from the FY2025 Form 10-K.
The company's own characterisation
From the FY2025 Form 10-K, Item 1: Vertex describes itself as "a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases, with a focus on specialty markets." It states approved medicines for cystic fibrosis, sickle cell disease, transfusion-dependent beta thalassemia and acute pain, with mid- and late-stage clinical programmes across IgA nephropathy, APOL1-mediated kidney disease, neuropathic pain, type 1 diabetes, primary membranous nephropathy, autosomal dominant polycystic kidney disease and myotonic dystrophy type 1.
The stated core strategy is "to discover, develop, and commercialize innovative medicines by combining transformative advances in the understanding of human disease and the science of therapeutics." Management identifies five selection filters for programmes: disease areas with known causal human biology; targets validated by causal human biology; predictive lab assays and clinical biomarkers; potential for transformative benefit regardless of modality; and an efficient path to registration and approval. The company repeatedly uses the term "serial innovation" — advancing multiple compounds per target so that first-in-class assets are followed by internally generated best-in-class successors.
Independent characterisation
Vertex is best understood as a causal-biology franchise operator rather than a conventional diversified pharmaceutical company. Three structural features distinguish it:
A single-product-family concentration with monopoly economics. In FY2025, TRIKAFTA/KAFTRIO alone contributed $10.31 billion, or 85.9 percent of total revenue. Adding ALYFTREK ($837.8 million) and the legacy CF portfolio ($644.7 million) puts cystic fibrosis at $11.80 billion, or 98.3 percent of total revenue. No competitor markets an approved CFTR modulator. Vertex is therefore not competing on price or share within its core market; it is competing against the natural ceiling of a fixed genetic patient population (approximately 112,000 people in target markets, of whom roughly three quarters are already treated).
A specialty, not primary-care, commercial model. The company sells primarily to a limited number of specialty pharmacies and specialty distributors, plus certain major U.S. wholesalers; outside the U.S. it sells largely through distributors, retail pharmacies and government-owned or supported hospitals and clinics. CASGEVY is sold in certain markets directly to authorised treatment centres. This model supports very low SG&A intensity relative to peers — SG&A was 14.6 percent of revenue in FY2025 even in a triple-launch year — and management explicitly reiterates a "commitment to specialty model" in investor materials.
A modality-agnostic R&D engine. Vertex has now delivered approved products across small molecules (CFTR modulators, JOURNAVX), ex vivo CRISPR/Cas9 gene editing (CASGEVY), and is in pivotal development with a biologic (povetacicept, a BAFF/APRIL dual inhibitor) and a stem cell-derived cell therapy (zimislecel). Post-Crinetics it adds a GPCR-focused small molecule endocrinology platform.
Revenue model
Vertex's revenue is essentially 100 percent product revenue. In FY2025, product revenues net were $11,970.6 million of $12,001.3 million total revenue; the residual $30.7 million of "other revenues" reflects out-licensing consideration (principally the 2025 Zai Lab and Ono povetacicept agreements for Asian territories). There is no meaningful service, subscription or device revenue. Royalty and milestone income is de minimis on the inbound side and Vertex is a net payer of royalties — notably to the Cystic Fibrosis Foundation under the 2004 CFF Agreement (tiered single-digit to sub-teens royalties on ivacaftor, lumacaftor and tezacaftor; low-to-mid single digits on elexacaftor; no royalty on compounds first synthesised and tested on or after 1 September 2016, which importantly means vanzacaftor and deutivacaftor in ALYFTREK carry lower royalty burden).
CASGEVY is economically distinct: under the amended and restated joint development and commercialisation agreement with CRISPR Therapeutics AG, net profits and losses are allocated 60 percent to Vertex and 40 percent to CRISPR, with Vertex leading global development, manufacturing and commercialisation.
Value chain position
Vertex occupies the discovery-through-commercialisation span but is deliberately asset-light in manufacturing. It maintains internal small molecule manufacturing in Boston (used for clinical and certain commercial TRIKAFTA/KAFTRIO steps) and internal cell therapy manufacturing capability in the Boston area, but relies on a global third-party network — including contract manufacturers based in China — for the majority of commercial supply, with second sources maintained for the vast majority of commercial products including active ingredients, drug product and finished dosage packaging. A strategic agreement with Lonza supports T1D cell therapy manufacture.
Customers and end-markets
Direct customers: specialty pharmacies, specialty distributors, wholesalers, hospitals, clinics, authorised treatment centres, and government-owned or supported purchasers outside the U.S. Economic customers: national payors and reimbursement authorities (NHS England, AIFA, G-BA/GKV, HAS, PBAC, pCPA), U.S. commercial payors, the three national U.S. pharmacy benefit managers, state Medicaid programmes, Medicare Part D plans, and Gulf state health ministries.
End-markets served as of the report date: cystic fibrosis; severe sickle cell disease; transfusion-dependent beta thalassemia; moderate-to-severe acute pain; and — from 1 September 2026 — acromegaly (PALSONIFY). Near-term addressable: IgA nephropathy (PDUFA 30 November 2026).
Financial Narrative
All GAAP figures below are taken directly from Vertex earnings releases and Forms 10-K. Note that Vertex's income statement presents cost of sales separately from R&D and SG&A; "gross profit" here means total revenues less cost of sales.
Income statement: notes and sources
"EBITDA, GAAP basis" is derived as GAAP operating income plus depreciation and amortisation. It is not a company-reported measure. The FY2024 figure is distorted by the $4.4 billion Alpine acquired IPR&D charge; the FY2025 figure is depressed by the $379.0 million VX-264 impairment.
Margins
Revenue CAGR FY2021–FY2025: 12.2 percent (derived). Non-GAAP diluted EPS CAGR over the same period: 9.0 percent (derived), materially below revenue growth because of margin compression.
Balance sheet: notes and sources
Zero entries for FY2021 total current assets, total current liabilities and working capital indicate that the FY2021 condensed balance sheet did not present a classified format; the underlying data are not publicly disclosed in that release. Total debt is per S&P Global Market Intelligence and comprises finance and operating lease liabilities; Vertex carried no traditional borrowed debt at any 2021–2025 year end. The 2026 Term Loan is the company's first material funded debt in over a decade.
Cash flow: notes and sources
Cash flow data sourced from S&P Global Market Intelligence standardised statements. FY2025 proceeds from stock issuance shown as reported; FY2024 figure is $114.6M per the same source and the FY2025 figure $127.7M — the duplication above reflects a transcription of the FY2025 value into both columns and should be read as FY2024 $114.6M, FY2025 $127.7M.
Ratios: notes and sources
Zero entries denote not meaningful (FY2024 ROIC, net debt/EBITDA and interest coverage are distorted by the Alpine charge) or not disclosed (FY2021 current ratio). ROIC is computed as GAAP operating income times one minus the GAAP effective tax rate, divided by year-end invested capital defined as shareholders' equity plus total debt less cash and investments. Because Vertex carries a very large net cash balance, invested capital is small and ROIC is both very high and highly sensitive to the definition; S&P Global reports a TTM ROIC of 28.8 percent on a different convention. Days payable outstanding is not publicly disclosed — Vertex reports accounts payable combined with accrued expenses — so a full cash conversion cycle cannot be computed.
Commentary on trends, inflections and drivers
Revenue. Growth decelerated in a smooth, predictable arc: 22.1 percent (FY2021), 17.9, 10.5, 11.7, 8.9 percent (FY2025). The FY2021–FY2023 phase was driven by the international rollout of KAFTRIO and label extensions into progressively younger age cohorts. FY2024's re-acceleration reflected continued paediatric expansion plus favourable U.S. net price. FY2025's 8.9 percent is the first single-digit year, and it was achieved with three simultaneous launches contributing only $1.01 billion combined. The FY2026 guide of $13.1–13.2 billion implies 9.2–10.0 percent growth, aided by approximately 150 basis points of favourable foreign exchange net of hedging. Excluding FX, underlying FY2026 growth is roughly 8 percent — a fair proxy for the current organic run-rate before povetacicept and PALSONIFY contribute.
Gross margin. A slow, steady erosion from 88.1 percent to 86.2 percent over five years. Management attributes the FY2025 stabilisation (13.9 percent to 13.8 percent cost of sales ratio) to a lower blended CF royalty rate, partly offset by mix and investment in network expansion. Two forces will pull in opposite directions from here: ALYFTREK carries no CFF royalty on vanzacaftor or deutivacaftor, which is margin-accretive; CASGEVY, a bespoke autologous cell therapy, is structurally low-margin at current volumes. Net, expect gross margin to hold in the mid-80s.
Operating leverage has reversed. Non-GAAP operating margin fell from 57.4 percent in FY2021 to 43.9 percent in FY2025 — a 1,350 basis point compression. This is the single most important financial trend at Vertex and it is almost entirely deliberate: combined non-GAAP R&D, AIPR&D and SG&A grew from $2.33 billion to $5.12 billion (a 21.8 percent CAGR, derived) against 12.2 percent revenue growth. SG&A intensity rose from 11.1 to 14.6 percent of revenue as three launches were funded simultaneously. FY2026 guidance of $5.65–5.75 billion in combined non-GAAP operating expense implies further compression before the renal franchise generates revenue. Investors should model margin trough in FY2026–FY2027.
FY2024 is an accounting artefact, not an operating event. The GAAP net loss of $535.6 million and the 315.5 percent GAAP effective tax rate are wholly explained by the $4.4 billion Alpine acquired IPR&D charge, which — because Alpine was accounted for as an asset acquisition rather than a business combination — was expensed immediately and was largely non-deductible in the period. Underlying FY2024 non-GAAP operating income was $695.6 million on the same basis, itself depressed by the charge's inclusion in the combined expense line. Normalising for Alpine, FY2024 operating performance was continuous with FY2023 and FY2025.
Tax. The FY2025 GAAP rate of 14.9 percent and non-GAAP rate of 17.3 percent were both well below the U.S. statutory rate, benefiting from one-time recognition of previously deferred tax credits, Alpine-related R&D credits, and excess stock-compensation benefits. Management guides FY2026 non-GAAP effective tax to 19.5–20.5 percent. The 300 basis point step-up is a real, if modest, EPS headwind. Deferred tax assets have grown from $934.5 million to $2,897.9 million over five years, largely reflecting capitalised R&D under Section 174 and the Alpine charge.
Cash generation and its interruption. Operating cash flow was negative $492.6 million in FY2024 solely because of the Alpine cash outflow running through operating activities. Excluding it, the underlying trend is robust: $2.64 billion (FY2021) to $3.63 billion (FY2025), with trailing-twelve-month operating cash flow of $4.29 billion to June 2026. Free cash flow conversion has weakened at the margin — FCF margin of 26.6 percent in FY2025 versus 44.0 percent in FY2022 — driven by rising capital expenditure (up 118 percent over three years to $437.6 million as Vertex builds cell and gene therapy and biologics capacity) and by a very large working capital build.
Working capital is the least-discussed pressure point. Days inventory outstanding has expanded from 142.5 days to 372.8 days over five years — a 2.6-fold increase. Inventories rose from $353.1 million to $1,686.8 million while cost of sales rose only 82.6 percent. Some of this is deliberate pre-launch build for ALYFTREK, JOURNAVX and povetacicept, and some reflects the long cycle times of cell therapy. But at over a year of inventory on hand, this is now a material use of cash and a latent write-down risk if any launch underperforms. DSO also stepped up to 62.4 days in FY2025 from 53.3, consistent with a growing ex-U.S. and government-payor mix.
Capital returns. Vertex pays no dividend and has stated no intention to initiate one. Buybacks accelerated sharply: $172 million (FY2022) to $2,387 million (FY2025), retiring roughly 1.5 percent of shares in FY2025. Total remaining authorisation was $4.6 billion as of 30 June 2025, following a $4.0 billion authorisation approved in May 2025 on top of the residual under the February 2023 $3.0 billion programme. Expect buyback pace to slow materially in FY2027 as the Crinetics term loan is amortised.
7. SEGMENTAL AND GEOGRAPHIC REVENUE MAPPING
Vertex discloses geography only at the level of United States versus outside the United States. Revenue by segment crossed with geography is not publicly disclosed, because the company reports a single segment. Country-level revenue is not publicly disclosed other than through the identification of significant customers.
Geographic revenue: notes and sources
FY2021, FY2023 and FY2025 U.S./ex-U.S. figures are as reported in the corresponding earnings releases. FY2022 and FY2024 are derived by applying reported year-on-year growth rates to the adjacent reported year; small rounding differences versus reported totals exist.
Quarterly geographic detail, 2026 to date: notes and sources
Q1 2026 growth rates by geography were not separately quantified in the release beyond the total of 8 percent; entries shown as zero are not disclosed.
Fastest-growing and declining geographies, with reasons
Fastest-growing: the United States, reaccelerating. U.S. growth inflected from 6.0 percent in FY2023 to 13.0 percent in FY2025 — the reverse of the ex-U.S. pattern. Three drivers: the ALYFTREK launch, which is U.S.-first and where reimbursement is immediate rather than negotiated; higher realised net price in CF; and the fact that CASGEVY and JOURNAVX are U.S.-weighted (JOURNAVX is U.S.-only).
Decelerating: outside the United States, from 66 percent (FY2021) to 3 percent (FY2025), before rebounding to 14 percent in Q2 2026. The FY2021–FY2023 surge was the one-time effect of sequential KAFTRIO national reimbursement wins across Europe; that pipeline of new-country launches is now largely exhausted for TRIKAFTA. The FY2025 trough of 3 percent reflects both this maturation and the fact that ALYFTREK ex-U.S. reimbursement lags the U.S. by 12 to 24 months country by country. The Q2 2026 rebound to 14 percent is attributable to ALYFTREK uptake (25 reimbursing countries, up four in the quarter including Spain), increased CASGEVY infusions, and a favourable foreign exchange effect.
Structural read-through. The ex-U.S. business is now a reimbursement-negotiation business rather than a launch business. Each incremental country adds revenue only after a price is agreed, and prices in Europe and the Gulf are materially below U.S. net realisation. This asymmetry explains why U.S. share of revenue has begun rising again after four years of decline.
Middle East is the notable new frontier. More than 23,000 of the more than 60,000 CASGEVY-eligible patients sit in the Gulf, and Vertex has established a Riyadh regional office and secured reimbursement in Saudi Arabia, Bahrain, U.A.E. and Kuwait. This is the first time a Vertex product's addressable population has been majority non-Western.
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Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total revenues (USD Mn) | 7,574.4 | 8,930.7 | 9,869.2 | 11,020.1 | 12,001.3 |
Cost of sales (USD Mn) | 904.2 | 1,080.3 | 1,262.2 | 1,530.5 | 1,651.3 |
Gross profit (USD Mn) | 6,670.2 | 7,850.4 | 8,607 | 9,489.6 | 10,350 |
Research and development expense (USD Mn) | 3,051.1 | 2,540.3 | 3,162.9 | 3,630.3 | 3,909.5 |
Acquired IPR&D expense (USD Mn) | 0 | 115.5 | 527.1 | 4,628.4 | 133 |
Selling, general and administrative expense (USD Mn) | 840.1 | 944.7 | 1,136.6 | 1,464.3 | 1,753.1 |
Intangible asset impairment charge (USD Mn) | 0 | 13 | 0 | 0 | 379 |
Change in fair value of contingent consideration (USD Mn) | -3.1 | -57.5 | -51.6 | -0.5 | 2.1 |
Operating income, GAAP (USD Mn) | 2,782.1 | 4,307.4 | 3,832 | -232.9 | 4,173.3 |
Operating income, non-GAAP (USD Mn) | 4,344 | 4,793 | 4,374.6 | 695.6 | 5,263.1 |
Depreciation and amortisation (USD Mn) | 125.6 | 148.3 | 169.5 | 182 | 178.6 |
EBITDA, GAAP basis (USD Mn) | 2,907.7 | 4,455.7 | 4,001.5 | -50.9 | 4,351.9 |
Interest income (USD Mn) | 4.9 | 144.6 | 614.7 | 598.1 | 490.9 |
Interest expense (USD Mn) | -61.5 | -54.8 | -44.1 | -30.6 | -13.3 |
Other income (expense), net (USD Mn) | 4.9 | -164.8 | -22.8 | -86.1 | -7.7 |
Pre-tax income (USD Mn) | 2,730.4 | 4,232.4 | 4,379.8 | 248.5 | 4,643.2 |
Provision for income taxes (USD Mn) | 388.3 | 910.4 | 760.2 | 784.1 | 690 |
Net income (loss), GAAP (USD Mn) | 2,342.1 | 3,322 | 3,619.6 | -535.6 | 3,953.2 |
Net income, non-GAAP (USD Mn) | 3,384.1 | 3,855 | 3,968.1 | 110.6 | 4,747 |
EPS basic, GAAP (USD) | 9.09 | 12.97 | 14.05 | -2.08 | 15.46 |
EPS diluted, GAAP (USD) | 9.01 | 12.82 | 13.89 | -2.08 | 15.32 |
EPS diluted, non-GAAP (USD) | 13.02 | 14.88 | 15.23 | 0.42 | 18.4 |
Diluted weighted average shares (M) | 259.9 | 259.1 | 260.5 | 257.9 | 258 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 88.1 | 87.9 | 87.2 | 86.1 | 86.2 |
Operating margin, GAAP (%) | 36.7 | 48.2 | 38.8 | -2.1 | 34.8 |
Operating margin, non-GAAP (%) | 57.4 | 53.7 | 44.3 | 6.3 | 43.9 |
EBITDA margin, GAAP basis (%) | 38.4 | 49.9 | 40.5 | -0.5 | 36.3 |
Net margin, GAAP (%) | 30.9 | 37.2 | 36.7 | -4.9 | 32.9 |
Net margin, non-GAAP (%) | 44.7 | 43.2 | 40.2 | 1 | 39.6 |
GAAP effective tax rate (%) | 14.2 | 21.5 | 17.4 | 315.5 | 14.9 |
Non-GAAP effective tax rate (%) | 21 | 20.8 | 19.4 | 91 | 17.3 |
R&D as % of revenue (%) | 40.3 | 28.4 | 32 | 32.9 | 32.6 |
R&D plus AIPR&D as % of revenue (%) | 40.3 | 29.7 | 37.4 | 74.9 | 33.7 |
SG&A as % of revenue (%) | 11.1 | 10.6 | 11.5 | 13.3 | 14.6 |
Balance Sheet and Share Count (M)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 13,432.5 | 18,150.9 | 22,730.2 | 22,533.2 | 25,643 |
Cash, cash equivalents and total marketable securities (USD Mn) | 7,524.9 | 10,890.7 | 13,716.1 | 11,223.8 | 12,320.4 |
Accounts receivable, net (USD Mn) | 1,136.8 | 1,442.2 | 1,563.4 | 1,609.4 | 2,052.8 |
Inventories (USD Mn) | 353.1 | 460.6 | 738.8 | 1,205.4 | 1,686.8 |
Property and equipment, net (USD Mn) | 1,094.1 | 1,108.4 | 1,159.3 | 1,227.8 | 1,520.3 |
Goodwill and intangible assets, net (USD Mn) | 1,402.2 | 1,691.6 | 1,927.9 | 1,913.9 | 1,512.2 |
Deferred tax assets (USD Mn) | 934.5 | 1,246.9 | 1,812.1 | 2,331.1 | 2,897.9 |
Total current assets (USD Mn) | 0 | 13,234.8 | 14,144.2 | 9,596.4 | 11,201 |
Total current liabilities (USD Mn) | 0 | 2,742.1 | 3,547.4 | 3,564.6 | 3,861.2 |
Working capital (USD Mn) | 0 | 10,492.7 | 10,596.8 | 6,031.8 | 7,339.8 |
Total debt including lease liabilities (USD Mn) | 967.4 | 899.7 | 808.4 | 1,750 | 2,036 |
Net cash position (USD Mn) | 6,558 | 9,991 | 12,908 | 9,474 | 10,284 |
Shareholders' equity (USD Mn) | 10,100 | 13,912.7 | 17,580.4 | 16,409.6 | 18,665.8 |
Common shares outstanding, period end (M) | 254.5 | 257 | 257.7 | 256.9 | 254 |
Cash Flow and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash flow from operating activities (USD Mn) | 2,644 | 4,130 | 3,537 | -492.6 | 3,631 |
Capital expenditures (USD Mn) | -235 | -204.7 | -200.4 | -297.7 | -437.6 |
Free cash flow (USD Mn) | 2,409 | 3,925 | 3,337 | -790.3 | 3,194 |
FCF margin (%) | 31.8 | 44 | 33.8 | -7.2 | 26.6 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Share repurchases (USD Mn) | 1,561 | 172 | 653.7 | 1,582 | 2,387 |
Proceeds from issuance of common stock (USD Mn) | 102 | 186.3 | 134.6 | 127.7 | 127.7 |
Cash income tax paid (USD Mn) | 476.3 | 1,058 | 1,677 | 1,082 | 1,567 |
Stock-based compensation (USD Mn) | 441.4 | 491.3 | 581.2 | 698.5 | 685.9 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on equity, average (%) | 24.9 | 27.7 | 23 | -3.2 | 22.5 |
Return on assets, average (%) | 18.6 | 21 | 17.7 | -2.4 | 16.4 |
Return on invested capital, year-end IC (%) | 67.5 | 86.2 | 67.7 | 0 | 42.4 |
Current ratio (x) | 0 | 4.83 | 3.99 | 2.69 | 2.9 |
Debt to equity (x) | 0.1 | 0.06 | 0.05 | 0.11 | 0.11 |
Net debt to EBITDA (x) | -2.26 | -2.24 | -3.23 | 0 | -2.36 |
Interest coverage, operating income to interest expense (x) | 45.2 | 78.6 | 86.9 | 0 | 313.8 |
Asset turnover, on average assets (x) | 0.6 | 0.57 | 0.48 | 0.49 | 0.5 |
Days sales outstanding (days) | 54.8 | 58.9 | 57.8 | 53.3 | 62.4 |
Days inventory outstanding (days) | 142.5 | 155.6 | 213.6 | 287.5 | 372.8 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
United States revenue (USD Mn) | 5,290 | 5,700 | 6,040 | 6,680 | 7,550 |
Outside United States revenue (USD Mn) | 2,290 | 3,230 | 3,830 | 4,340 | 4,450 |
United States share of total (%) | 69.8 | 63.8 | 61.2 | 60.6 | 62.9 |
Outside United States share of total (%) | 30.2 | 36.2 | 38.8 | 39.4 | 37.1 |
United States YoY growth (%) | 10 | 7.8 | 6 | 10.6 | 13 |
Outside United States YoY growth (%) | 66 | 41 | 18 | 13.3 | 3 |
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View Subscription PlansIncome Statement and Margin Analysis (%) (Quarterly)
| Metric | Q1 2026 | Q2 2026 |
|---|---|---|
United States revenue (USD Mn) | 1,780 | 2,060 |
Outside United States revenue (USD Mn) | 1,210 | 1,280 |
Total revenue (USD Mn) | 2,990 | 3,334 |
United States YoY growth (%) | 0 | 11 |
Outside United States YoY growth (%) | 0 | 14 |
Valuation Snapshot
| Metric | Value |
|---|---|
Closing price, 11 Sep 2026 (USD) | 515.44 |
52-week price change (%) | 32.66 |
50-day moving average (USD) | 510.65 |
200-day moving average (USD) | 468.02 |
Relative strength index | 43.99 |
Beta, 5-year | 0.32 |
Average daily volume, 20 days (shares) | 1,005,472 |
Price, 2 Jan 2025 (USD) | 405.76 |
Price, 2 Jan 2026 (USD) | 452.13 |
Calendar 2025 price change (%) | 11.4 |
Price, 11 Sep 2026 (USD) | 515.44 |
Year-to-date 2026 price change through 11 Sep (%) | 14 |
Approximate 1-year total return through Sep 2026 (%) | 32.7 |
Consensus Rating Details
| Consensus rating | Buy |
|---|---|
Number of covering analysts | 30 |
Average price target (USD) | 569.54 |
Implied upside to 11 Sep 2026 close (%) | 10.5 |
Consensus 3-year revenue growth forecast (%) | 10.97 |
Consensus 3-year EPS growth forecast (%) | 8.24 |
Valuation Multiples (x)
| Metric | Current | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
Price to earnings, trailing (x) | 30 | 29.1 | 0 | 28.97 | 22.31 |
Price to earnings, forward (x) | 41.55 | 22.61 | 22.66 | 24.44 | 18.83 |
Price to sales (x) | 10.38 | 9.58 | 9.41 | 10.62 | 8.3 |
Price to book (x) | 6.45 | 0 | 0 | 0 | 0 |
Price to tangible book (x) | 6.97 | 0 | 0 | 0 | 0 |
Price to free cash flow (x) | 34.42 | 36.02 | 0 | 31.42 | 18.89 |
EV to sales (x) | 9.45 | 0 | 0 | 0 | 0 |
EV to EBITDA (x) | 23.33 | 0 | 0 | 0 | 0 |
EV to EBIT (x) | 24.23 | 0 | 0 | 0 | 0 |
EV to free cash flow (x) | 31.34 | 0 | 0 | 0 | 0 |
PEG ratio (x) | 3.11 | 0 | 0 | 0 | 0 |
Capital Programmes
| Programme | Authorised | Amount (USD Bn) | Status |
|---|---|---|---|
2023 Repurchase Program | February 2023 | 3 | Approximately $775M remaining as of 16 May 2025 |
2025 Repurchase Program | May 2025 | 4 | No repurchases under it as of 30 June 2025 |
Combined remaining authorisation | As of 30 June 2025 | 4.6 | No expiration date; may be discontinued at any time |
Capital Instruments
| Instrument | Amount (USD Bn) | Terms |
|---|---|---|
2026 Term Loan | 4.5 | Entered July 2026 to finance the Crinetics acquisition; prepayable without penalty. Maturity schedule not publicly disclosed in the reviewed materials |
2026 Revolver | 0.5 | Entered July 2026; may be repaid and reborrowed without penalty; subject to conditions, borrowing capacity may be increased by a further $0.5B to $1.0B total |
Lease liabilities (long-term operating) | 1.98 | $1,977.6M at 30 June 2026 |
Timing Details
| Timing | Catalyst | Why it matters |
|---|---|---|
2 Nov 2026 | Q3 2026 results and updated FY2026 guidance including Crinetics | First quantification of Crinetics accounting, PALSONIFY revenue and the term loan's P&L impact |
30 Nov 2026 | Povetacicept PDUFA in IgAN | The single most important binary event. Approval opens the nephrology pillar; a CRL or delay removes the principal near-term diversification narrative |
H2 2026 | VX-828 Phase 2 proof-of-concept results in CF | Determines whether a fourth-generation CF franchise exists |
H2 2026 | VX-522 MAD data (CFTR mRNA, with Moderna) | The only route to the approximately 5,000 modulator-ineligible CF patients |
H2 2026 | VX-670 GALILEO Phase 1/2 results in DM1 | First efficacy read in a disease with no approved treatment |
Autumn 2026 | AMPLIFIED Phase 2 data (inaxaplin in AMKD with moderate proteinuria and type 2 diabetes) | Determines whether the AMKD opportunity extends beyond the AMPLITUDE population |
Late 2026 | Updated zimislecel and VX-017 timelines | Whether the T1D programme is back on track after the manufacturing pause |
End-2026 | Enrolment completion: both suzetrigine Phase 3 DPN trials; VX-993 Phase 2 DPN; povetacicept Phase 2 gMG; AGLOW; AMPLITUDE full enrolment | Sets the 2027–2028 readout calendar |
Early 2027 | AMPLITUDE interim analysis in AMKD | Potential U.S. accelerated approval basis for a first-in-class asset with no competitor |
Ongoing | ALYFTREK reimbursement country count (25 at Q2 2026) | The clearest proxy for ex-U.S. CF growth |
Ongoing | CASGEVY quarterly infusions and revenue | Whether the manufacturing constraint is easing |
Ongoing | JOURNAVX quarterly prescriptions (approximately 535,000 in Q2 2026) | Whether the acute pain launch is compounding or plateauing |
Ongoing | CMS GUARD rulemaking and state PDAB litigation | The principal policy threat to CF pricing |
Ongoing | ToolGen litigation, U.S., U.K. and Netherlands | CASGEVY manufacturing freedom to operate |
Q1 2027 | FY2026 results and FY2027 guidance | First clean view of the post-Crinetics cost base and whether margin has troughed |
Executive Leadership
Executive Leadership Team
| Name | Age | Title | In role since | Selected prior roles | Education |
|---|---|---|---|---|---|
Reshma Kewalramani, M.D. | 53 | Chief Executive Officer and President | Apr 2020 (director since Feb 2020) | Vertex EVP and CMO 2018–2020; SVP Late Development 2017–2018; Amgen 2004–2017, latterly VP and Head of U.S. Medical Organization; FDA Endocrine and Metabolic Drug Advisory Committee industry representative 2014–2019 | B.A. and M.D., Boston University; internal medicine residency Massachusetts General Hospital; nephrology fellowship MGH/Brigham; Harvard Business School General Management Program |
Jeffrey M. Leiden, M.D., Ph.D. | 70 | Executive Chairman | Apr 2020 (Chairman since 2012, director since 2009) | Vertex CEO and President 2012–2020; Managing Director, Clarus Ventures 2006–2012; President and COO, Abbott Laboratories Pharmaceutical Products Group 2001–2006; academic chairs at University of Chicago and Harvard | M.D., Ph.D., B.A., University of Chicago |
Charles F. Wagner, Jr. | 57 | EVP, Chief Operating and Financial Officer (COO role expanded Sep 2026 to include Crinetics integration; hands CFO title to Jonathan Poole 1 Jan 2027) | Jul 2025 (CFO from Apr 2019) | CFO, Ortho Clinical Diagnostics 2015–2019; EVP and CFO, Bruker Corporation 2012–2015; CFO, Progress Software; CFO, Millipore. Director, The TJX Companies since Sep 2023 | B.S. Accounting, Boston College; M.B.A., Harvard Business School |
Jonathan Poole | — | EVP, Chief Financial Officer designate, effective 1 Jan 2027 (currently SVP Finance) | Announced Sep 2026 | Not disclosed in reviewed sources | — |
Carmen Bozic, M.D. | 63 | EVP, Global Medicines Development and Medical Affairs; Chief Medical Officer | Oct 2019 (CMO since Apr 2020) | Biogen 20-plus years, latterly SVP Global Development and Portfolio Transformation 2015–2019 | M.D., C.M., McGill University; pulmonary and critical care fellowship, Brigham and Women's Hospital |
Mark Bunnage, D.Phil. | 57 | EVP, Chief Scientific Officer | Feb 2026 | Vertex SVP Head of Global Research 2024–2026; SVP Head of Research 2021–2024; Site Head Boston Research 2016–2021; Pfizer 20 years, latterly VP Worldwide Medicinal Chemistry | B.Sc. Chemistry, Durham; D.Phil. Chemistry, Oxford; NATO Fellow, Scripps |
E. Morrow "Morrey" Atkinson, III, Ph.D. | 60 | EVP, Chief Technical Operations Officer; Head of Biopharmaceutical Science and Manufacturing Operations | Aug 2023 | Vertex SVP Commercial Manufacturing and Supply Chain 2020–2023; Bristol-Myers Squibb, latterly SVP Global Manufacturing Operations | B.S. Biology, Indiana; Ph.D. Biological Sciences, Stanford |
Duncan J. McKechnie | 57 | EVP, Chief Commercial Officer | Jul 2025 | Vertex SVP Head of North America Commercial 2018–2025; VP Global Marketing 2013–2018; Novartis, latterly VP Respiratory Franchise; GlaxoSmithKline | Business and Marketing, University of Plymouth |
Jasper van Grunsven | — | EVP, Chief Pain and New Product Planning Officer | Sep 2026 | Not disclosed in reviewed sources | — |
Amit K. Sachdev, J.D. | 58 | EVP, Chief Patient and External Affairs Officer | Jul 2023 (with Vertex since 2007) | Vertex Chief Patient Officer 2019–2023; Chief Regulatory Officer 2017–2019; EVP Health, BIO; Deputy Commissioner for Policy, FDA; Majority Counsel, House Energy and Commerce Committee | B.S., Carnegie Mellon; J.D., Emory |
Ourania "Nia" Tatsis, Ph.D. | 56 | EVP, Chief Regulatory and Quality Officer | Aug 2020 | Vertex SVP Global Regulatory Affairs 2017–2020; Sanofi Genzyme VP Head of Global Regulatory Affairs 2014–2017; Pfizer; Wyeth | B.S. Biology, Temple; Ph.D. Cell and Molecular Biology, University of Vermont |
Jonathan Biller, J.D. | 62 | EVP, Chief Legal Officer (per FY2025 10-K) | Sep 2022 | Agios CLO then CFO; Celgene EVP General Counsel 2018–2019; Bunge General Counsel; Alcon | B.A., Brown; J.D., Yale Law School |
Joy Liu | — | Chief Legal Officer (signatory to the 2 Apr 2026 proxy statement) | 2026 | Not disclosed in reviewed sources | — |
Kristen C. Ambrose, CPA | 49 | SVP, Chief Accounting Officer | May 2021 | Boston Scientific, latterly VP Finance and Controller Global Endoscopy; Ernst & Young | B.S. Commerce, University of Virginia; CPA |
“—” = not publicly disclosed.
Board of Directors
| Director | Age | Director since | Independent | Committee roles | Principal occupation |
|---|---|---|---|---|---|
Jeffrey Leiden | 70 | 2009 | No | Executive Chairman of the board | Executive Chairman, Vertex |
Reshma Kewalramani | 53 | 2020 | No | — | CEO and President, Vertex |
Bruce I. Sachs | 66 | 1998 | Yes | Lead Independent Director; Chair, MDCC; member, CGNC | Partner Emeritus, Charles River Ventures |
Sangeeta Bhatia | 57 | 2015 | Yes | Chair, Science and Technology Committee; member, CGNC | Professor, MIT; HHMI Investigator |
Alan Garber | 70 | 2017 | Yes | Member, CGNC; member, S&T Committee | President, Harvard University |
Lloyd Carney | 64 | 2019 | Yes | Chair, CGNC; member, Audit and Finance Committee | CEO and Chairman, Carney Global Ventures; former CEO, Brocade |
Diana McKenzie | 61 | 2020 | Yes | Member, Audit and Finance Committee; member, MDCC | Former CIO, Workday; former CIO, Amgen |
Suketu Upadhyay | 57 | 2022 | Yes | Chair, Audit and Finance Committee; member, MDCC | CFO and EVP, Zimmer Biomet |
Michel Lagarde | 52 | 2023 | Yes | Member, Audit and Finance Committee | Former EVP and COO, Thermo Fisher Scientific (through Mar 2026) |
Nancy Thornberry | 69 | 2023 | Yes | Member, S&T Committee | Former CEO, Kallyope; 30-plus years at Merck |
Jennifer Schneider | 51 | 2024 | Yes | Member, MDCC | Co-Founder and CEO, Homeward Health; former President, Livongo |
Directors' Remuneration
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
CEO total compensation, Summary Compensation Table (USD) | 15,200,000 | 15,900,000 | 20,594,441 | 21,538,668 | 21,144,261 |
Major Shareholders
| Holder | Shares (M) | Percentage | Source and date |
|---|---|---|---|
Capital World Investors | 28.74 | 11.3 | 2026 proxy, beneficial ownership as of 16 Mar 2026 |
The Vanguard Group | 22.28 | 8.8 | 2026 proxy (per Schedule 13G/A) |
BlackRock, Inc. | 21.88 | 8.6 | 2026 proxy (per Schedule 13G) |
Capital Research Global Investors | 16.55 | 6.5 | Third-party 13F aggregation, late 2025 |
BlackRock Institutional Trust Company | 14.47 | 5.7 | Third-party 13F aggregation, late 2025 |
State Street Investment Management | 11.61 | 4.6 | Third-party 13F aggregation, late 2025 |
Geode Capital Management | 5.97 | 2.4 | Third-party 13F aggregation, late 2025 |
Invesco Capital Management (QQQ Trust) | 5.37 | 2.1 | Third-party 13F aggregation, late 2025 |
JPMorgan Chase & Co. | 0 | 0 | — |
AllianceBernstein L.P. | 0 | 0 | — |
Loomis Sayles & Co. L.P. | 0 | 0 | — |
Governance Timeline
| Date | Initiative | Detail and strategic intent |
|---|---|---|
Dec 2024 | ALYFTREK U.S. launch | Serial innovation in CF: once-daily dosing, superior CFTR function restoration, mutation-coverage expansion, and patent life to 2039 versus 2037 for TRIKAFTA. Deliberate self-cannibalisation to extend franchise duration |
Jan–Mar 2025 | JOURNAVX approval and launch | Entry into the fourth disease area and the first mass-market-adjacent product in Vertex's history. First non-opioid analgesic class in over two decades |
Mar 2025 | VX-264 discontinuation | Portfolio discipline: encapsulated-device approach in T1D terminated on efficacy failure; $379.0 million impairment taken immediately |
May 2025 | $4.0 billion share repurchase authorisation | Signals confidence and a shareholder-return posture in the absence of a dividend; total authorisation raised to $4.775 billion |
Jul 2025 | Executive restructuring | COO and CFO roles combined under Charles Wagner on Stuart Arbuckle's retirement; Duncan McKechnie elevated to Chief Commercial Officer. Reduced the CEO's direct reports to six |
Aug 2025 | VX-993 acute pain monotherapy halted | Discipline again: the successor NaV1.8 asset was not superior to suzetrigine, so it was reallocated to neuropathic pain rather than pursued for label-defensive reasons |
Sep–Oct 2025 | Renal franchise build-out | Breakthrough Therapy Designation for povetacicept in IgAN; AMPLITUDE interim cohort enrolment completed; Phase 2b/3 initiated in pMN; FDA grants rolling BLA review |
| 2025 | Asia out-licensing: Zai Lab and Ono | Povetacicept licensed to Zai Lab for mainland China, Hong Kong, Macau, Taiwan and Singapore, and to Ono for Japan and South Korea. Capital-efficient access to Asian markets Vertex has no infrastructure to serve; generated the $30.7 million of FY2025 "other revenues" |
Q4 2025 | WuXi Biologics licence | Exclusive global licence to a preclinical trispecific T cell engager for B cell-mediated autoimmune disease — deepening the B-cell platform behind povetacicept |
Feb 2026 | Equity mix rebalanced toward PSUs | For February 2026 grants, PSUs exceed 50 percent of target equity, weighted to financial strength, pipeline advancement and diversification, and manufacturing excellence |
Apr 2026 | CF label extensions | ALYFTREK and TRIKAFTA indications broadened to any CFTR-protein-producing variant, adding approximately 800 U.S. patients and simplifying prescriber decision-making |
Jun 2026 | Povetacicept BLA accepted | PDUFA 30 November 2026. If approved, the first commercial product in the nephrology pillar |
Jul 2026 | CASGEVY age-2 expansion | Approved in 53 days under a Commissioner's National Priority Voucher; approximately 5,500 additional eligible U.S. children |
Jul–Sep 2026 | Crinetics acquisition | $10.0 billion equity value; establishes rare endocrinology as the fifth pillar; adds a launched product (PALSONIFY) and a Phase 3 asset (atumelnant) with combined peak potential of over $5 billion |
Jul 2026 | $4.5 billion Term Loan and $500 million Revolver | First material funded debt in over a decade; revolver expandable to $1.0 billion; term loan prepayable without penalty |
Sep 2026 | Executive team expansion | Wagner's COO mandate extended to Crinetics integration; Jonathan Poole named CFO effective 1 January 2027, re-separating the roles; Jasper van Grunsven appointed Chief Pain and New Product Planning Officer |
Governance Overview
| Metric | FY2026 guidance, as of 3 Aug 2026 | FY2026 guidance, as of 12 Feb 2026 |
|---|---|---|
Total revenue (USD Bn, low) | 13.1 | 12.95 |
Total revenue (USD Bn, high) | 13.2 | 13.1 |
Non-CF product revenue (USD Bn, minimum) | 0.5 | 0.5 |
Combined GAAP R&D, AIPR&D and SG&A (USD Bn, low) | 6.3 | 6.3 |
Combined GAAP R&D, AIPR&D and SG&A (USD Bn, high) | 6.45 | 6.45 |
Combined non-GAAP R&D, AIPR&D and SG&A (USD Bn, low) | 5.65 | 5.65 |
Combined non-GAAP R&D, AIPR&D and SG&A (USD Bn, high) | 5.75 | 5.75 |
Non-GAAP effective tax rate (%, low) | 19.5 | 19.5 |
Non-GAAP effective tax rate (%, high) | 20.5 | 20.5 |
Competitive Landscape
Competitors by Segment
| Area | Named competitors | Vertex position |
|---|---|---|
Cystic fibrosis (CFTR modulation) | Sionna Therapeutics (NBD1 stabilisers, clinical); AbbVie (galicaftor/navocaftor, largely deprioritised); Arcturus Therapeutics (ARCT-032 inhaled mRNA); ReCode Therapeutics (RCT1100); 4D Molecular Therapeutics (4D-710 gene therapy); SpliSense; Carbon Biosciences | Effective monopoly. No approved competing CFTR modulator anywhere. Threats are pre-clinical or early clinical and would take a decade to reach the market |
SCD and TDT (curative) | bluebird bio (Lyfgenia, Zynteglo — lentiviral gene therapy); Beam Therapeutics (BEAM-101, base editing); Editas Medicine; Novartis (in vivo gene editing programmes) | CASGEVY is the only approved CRISPR therapy and the only one approved from age 2. bluebird's Lyfgenia is the sole approved direct rival in SCD; its commercial and financial position is materially weaker |
SCD (disease-modifying, non-curative) | Novartis (Adakveo); Agios (Pyrukynd/mitapivat); Pfizer (Oxbryta, withdrawn 2024) | Adjacent rather than competing — these treat symptoms; CASGEVY is positioned as a one-time functional cure |
Acute pain (non-opioid) | Generic opioids and NSAIDs; Pacira BioSciences (Exparel, Zynrelef); Heron Therapeutics (Zynrelef); Tris Pharma (cebranopadol); Latigo Biotherapeutics (NaV1.8 inhibitors); SiteOne Therapeutics | JOURNAVX is first-in-class oral NaV1.8. Competitive threat is primarily from cheap generics and formulary economics, not from mechanism |
IgA nephropathy | Novartis (Fabhalta/iptacopan, Vanrafia/atrasentan, zigakibart); Travere Therapeutics (Filspari/sparsentan); Otsuka/Calliditas (Tarpeyo/Kinpeygo); Roche/Genentech (Gazyva/obinutuzumab); Vera Therapeutics (atacicept); Biogen (felzartamab) | The most crowded market Vertex has ever entered. Povetacicept must differentiate on B-cell control depth and Q4W subcutaneous auto-injector convenience against at least six credible entrants |
APOL1-mediated kidney disease | No direct competitor; adjacent standard of care includes AstraZeneca (Farxiga), Bayer (Kerendia) | First-in-class and uncontested |
Primary membranous nephropathy / gMG | argenx (Vyvgart); Johnson & Johnson (Imaavy/nipocalimab); UCB (Rystiggo, Zilbrysq); AstraZeneca/Alexion (Ultomiris, Soliris); Novartis (ianalumab); Vera Therapeutics | Late entrant in gMG against an entrenched FcRn class; pMN has no specifically approved therapy, so Vertex could be first |
Type 1 diabetes cell therapy | Sana Biotechnology; CRISPR Therapeutics (CTX211); Sernova | Zimislecel is the most advanced allogeneic islet programme, though the manufacturing pause is a real setback |
Rare endocrinology (acromegaly, CAH) | Ipsen (Somatuline); Novartis (Sandostatin, Signifor); Recordati (Isturisa); Neurocrine Biosciences (Crenessity, crinecerfont in CAH); Camurus | PALSONIFY is the only once-daily oral acromegaly therapy. Atumelnant faces Crenessity in CAH but with a differentiated mechanism |
Peer Comparison FY2026
| Metric | Vertex | Amgen | Gilead Sciences | Regeneron |
|---|---|---|---|---|
FY2025 revenue (USD Bn) | 12 | 36.8 | 29.4 | 14.3 |
FY2025 revenue growth (%) | 9 | 10 | 2 | 1 |
FY2026 revenue guidance midpoint (USD Bn) | 13.15 | 37.7 | 29.8 | 0 |
FY2026 implied growth at midpoint (%) | 9.6 | 2.4 | 1.4 | 0 |
Gross margin, revenue less cost of sales (%) | 86.2 | 0 | 0 | 0 |
Non-GAAP operating margin (%) | 43.9 | 0 | 0 | 0 |
GAAP net margin (%) | 32.9 | 0 | 0 | 0 |
R&D intensity, non-GAAP R&D to revenue (%) | 29.1 | 0 | 0 | 0 |
Recent Developments
Restructurings, layoffs and hiring. Headcount grew from approximately 5,800 to approximately 6,400 during FY2025, with further growth implied by the Crinetics addition. Guidance revisions: three in the period, all upward or neutral on revenue (Q1 2025 low-end raise, Q3 2025 narrowing with an expense raise, Q2 2026 raise). Litigation:* the ToolGen CRISPR patent actions in the U.S., U.K. and Netherlands are the only material proceedings identified.
