Vertex Earnings: Robust Sales of Trikafta/Kaftrio Support Long-Term Growth and Diverse Pipeline

Narrow-moat Vertex delivered solid third-quarter results, highlighted by a 12% increase in product revenue compared with the prior-year period. Strong demand for its triple-combination cystic fibrosis therapy, Trikafta/Kaftrio, delivered $2.58 billion in revenue, comprising 93% of the quarter’s product revenue. We appreciate that Vertex is progressing with its diverse pipeline of candidates. We forecast over $10.87 billion in total revenue in 2024, representing growth of about 10%. We maintain our fair value estimate of $356 per share, and we continue to have a positive outlook for the firm as it progresses in expanding its portfolio beyond cystic fibrosis.