On November 4, 2024, Vertex reported consolidated financial results for the third quarter ended September 30,2024, and updated its full year 2024 guidance. Product revenue of $2,771.9 million exceeded Kingswood Capital estimates of$2,690.0 million by 3%. GAAP EPS of $4.01 reflected stronger than anticipated operating results and higher interest income, outperforming our $3.79 EPS estimate.

We raise our FY 2024 earnings estimate from $(1.78) to $(1.57) to account for the stronger than anticipated third quarter results and a slight increase in our fourth quarter 2024 revenue projections. FY 2024 earnings are affected by Vertex’s second quarter EPS of $(13.92), due to its $5.0 billion acquisition of Alpine Immune Sciences.

Vertex continues to progress multiple product development programs toward commercialization, expecting two new product launches in early 2025 and advancing three additional programs into Phase 3 testing during the third quarter of 2024.

Sustained execution has helped Vertex achieve strong operating margins and cash position, allowing continued, significant investments in its pipeline and commercial capabilities.