On Monday, Vertex Pharmaceuticals stocks rose in its fiscal third quarter as its cystic fibrosis (CF) treatment registered strong demand.
Its stock price increased by 0.36% to $472.80 per share on November 04’s afternoon session. More importantly, it is anticipated to surge by 1.64% to $480.57 apiece in the market after hours.
The drugmaker’s earnings per share (EPS) spiked to $4.38, higher than the $4.08 forecast and the previous -$12.83 data.
Additionally, its revenue bounced to $2.77 billion, exceeding the outlook of $2.69 billion and $2.65 billion in the last quarter.
In line with this, the top-selling CF drug from Vertex ascended by over 13.00% to $2.59 billion for the quarter’s sales. Correspondingly, the figures generated by Trikafta surpassed the $2.33 billion estimate of market analysts.
Accordingly, rising demand for the CF treatment pushed the biopharmaceutical company to improve its annual revenue projections. It now forecasts a product revenue between $10.80 billion and $10.90 billion for 2024.
Similarly, experts anticipate the drugmaker to achieve an annual revenue of $10.75 billion.
Based on reports, the therapy cures a genetic illness that concerns the lungs, digestive system, and other organs. In addition, the data from the United States government reveals that nearly 35,000 people in the country are affected by the disorder.
Pipeline Gains Needed to Drive Upside Vertex Stock
After the third-quarter results of Vertex beat the expectations of Wall Street, analysts indicated that it needs pipeline success to generate another stock upside.
At the same time, experts stress that the products that are in development are crucial to the company’s growth.
However, they emphasized that the continued CF performance is likely to maintain the stock value of Vertex even if the pipeline falls short.
More concretely, the Massachusetts-based corporation would launch its all-new treatment for CF this year. Likewise, the Food and Drug Administration will need to decide on the drugs’ awaited approval.
