Vertex Stock Falls on Discontinuation of VX-993 Program in Acute Pain; Diversification of Product Base Remains on Track for Potential New Approvals in 2026; Reiterate BUY Rating

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On August 4, 2025, Vertex reported consolidated financial results for the second quarter ended June 30, 2025, and reiterated full year 2025 guidance. Total revenue of $2,964.7 million increased 12.1% year-over-year, exceeding Kingswood Capital’s estimate of $2,885.0 million by 2.8%. GAAP EPS of $3.99 for the quarter exceeded our forecast of $3.82 by 4.5%.

Vertex left its FY 2025 guidance unchanged, predicting revenues in the $11.85-$12.00 billion range, combined GAAPR&D and SG&A expenses of $5.55-$5.70 billion (including approximately $100 million of acquired in-process R&D[AIPR&D] expenses), as well as a non-GAAP effective tax rate of 20.5%-21.5%.

Revenue guidance assumes continued growth in cystic fibrosis (CF), including the global launch of ALYFTREK, continued uptake of CASGEVY® in multiple regions, and early contributions from the U.S. launch of JOURNAVX. Combined GAAP R&D and SG&A expense guidance includes expectations for continued investment in multiple mid- and late-stage clinical development programs and commercial capabilities.

Vertex reported progress with its ongoing CASGEVY, ALYFTREK, and JOURNAVX launches in sickle cell disease/beta-thalassemia, cystic fibrosis, and acute pain indications, respectively.

Vertex also continues efforts to diversify its product base by advancing multiple development programs into late-stage clinical trials and toward commercialization. Phase 3 trials are ongoing in chronic pain, Type 1 diabetes, IgA nephropathy (IgAN), and APOL1-mediated kidney disease, which, if successful, could set up potential filings for FDA regulatory approval in 2026.

Sustained execution has helped Vertex achieve both a strong operating margin and cash position, allowing continued, significant investments in its pipeline and commercial capabilities. In ourview, this week’s selloff of VRTX shares will prove to be a temporary blip on the stock chart and presents a buying opportunity, while Vertex’s long-term prospects remain strong. We reiterate our BUY rating and maintain our $500 price target on the stock. We expect that ongoing diversification of the company’s revenue base, disease areas of focus, R&D pipeline, and operating geographies will build long-term value for shareholders.