Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) reported a 29% jump in earnings for the second quarter of 2019 helped by strong growth in total product revenues. The results exceeded analysts’ expectations. Further, the biotechnology company lifted its revenue guidance for the full year 2019.
Net income climbed by 29% year-over-year to $267 million or $1.03 per share. Adjusted earnings soared by 34% to $1.26 per share.
Total product revenues increased by 25% to $940 million, primarily driven by the uptake of Symdeko in the US and Symkevi in Germany. Total revenues grew by 25% to $941.29 million.
Looking ahead into the full year 2019, the company lifted its total product revenues outlook to the range of $3.60 billion to $3.70 billion from the previous range of $3.45 billion to $3.55 billion. Combined R&D and SG&A expenses are now anticipated to be $2.25 billion to $2.40 billion compared to the prior estimate range of $2 billion to $2.15 billion. The adjusted effective tax rate is still predicted to be 21% to 22%.
The company’s revised combined R&D and SG&A expense guidance reflect upfront payments made to CRISPR Therapeutics and Kymera Therapeutics for transactions announced in the second quarter of 2019.
In cystic fibrosis, the company submitted a New Drug Application to the FDA for its VX-445 triple combination regimen, which Vertex believes has the potential to treat up to 90% of all CF patients in the future. The company continues to focus on ensuring all eligible patients have access to its CF medicines as early as possible.
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Also, Vertex has rapidly grown its pipeline beyond CF, advancing seven new potential medicines across five disease areas, including beta-thalassemia, sickle cell disease, alpha-1 antitrypsin deficiency, APOL1-mediated kidney diseases, and pain. And through expanded collaboration with CRISPR Therapeutics and acquisition of Exonics Therapeutics, the company has now established a leading gene-editing platform for the treatment of Duchenne Muscular Dystrophy and Myotonic Dystrophy Type 1.
Shares of Vertex ended Wednesday’s regular session down 1.72% at $166.62 on the Nasdaq. Following the earnings release, the stock gained over 2% in the after-market session.