Vertex Pharmaceuticals Incorporated VRTX
NasdaqPharmaceuticalsFinancials to Jun 30, 2026 · Updated Oct 5, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 5.1 | 6.1 |
| Securities | 1.5 | 1.7 |
| Long-term securities | 5.7 | 5.8 |
| Debt | 0.0 | 0.0 |
| Net cash | 12.3 | 13.6 |
| Equity | 18.7 | 20.2 |
- Debt / EBITDA
- 0.00×
- Debt / equity
- 0.00×
- Leases (12/31/25)
- $2.0B
- Diluted shares
- 255M
- Book value / share
- $79.34
- Price / book
- 6.3×
- Net cash / share
- $53.45
- Market cap
- $127.9B
- Enterprise value
- $114.3B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 12.5% | +0.4 pts | |
| Operating margin | 37.4% | -1.4 pts | |
| FCF margin | 30.4% | -0.9 pts | |
| Capex / revenue | 3.4% | -1.5 pts | |
| CF product revenue | $3.2B | +11% | |
| TRIKAFTA/KAFTRIO revenue | $2.5B | -2% | |
| ALYFTREK revenue | $574M | +266% | |
| CASGEVY revenue | $76M | +151% | |
| JOURNAVX revenue | $50M | +313% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About VRTX
Vertex sells medicines for cystic fibrosis, inherited blood disorders, acute pain and, since September 2026, acromegaly. CF supplied 96.2% of June-quarter product sales and funds diversification.
- IP Choke Point
Patents protect TRIKAFTA/KAFTRIO through 2037 and ALYFTREK through 2039.
- Long Term Contracts
An extended long-term NHS England reimbursement agreement supports paid access to established CF medicines.
- Biologic regulatory exclusivity
CASGEVY has 12 years of US biologic regulatory exclusivity from its 2023 approval, protecting its own dossier through 2035.
- IP Choke Point
Product and manufacturing patents restrict copying of CASGEVY, but important CRISPR platform licences are non-exclusive or co-exclusive.
- Mar 31, 2025 · Impairment charge −$379M
Vertex stopped advancing VX-264 and wrote off the acquired research asset. This non-cash loss signals a failed diabetes programme, not weaker CF sales.
- Dec 31, 2024 · Full year · One-off charge −$198M
Cash settlement of unvested Alpine employee awards produced $165.0 million of R&D and $32.6 million of selling and administration expense. This deal cost is separate from the acquired research asset.
- Jun 30, 2024 · One-off charge −$4.4B
Alpine's povetacicept research asset was expensed on acquisition because it had no alternative use. This non-deductible purchased asset drove the reported loss and operating cash outflow; it produced no ordinary income-tax deduction.
- Dec 31, 2023 · Full year · One-off charge −$243M
Entrada upfront and milestone payments bought access to a myotonic dystrophy research programme. The $24.9 million equity investment is a separate asset and is excluded.
- Dec 31, 2023 · Full year · One-off charge −$170M
CRISPR licence and research milestone payments bought gene-editing rights for diabetes therapies; they were expensed rather than representing ongoing internal research.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 6.96 | 9.83 | 11.76 | 15.97 | 23.56 | 29.14 | 34.47 | 37.89 | 42.73 | 46.52 | 49.32 | +23.5%/yr | |
| Cash flow | 0.96 | 3.34 | 4.90 | 6.02 | 12.35 | 10.17 | 15.94 | 13.58 | -1.91 | 14.08 | 16.82 | +34.7%/yr | |
| Earnings | -0.46 | 1.04 | 8.09 | 4.51 | 10.29 | 9.01 | 12.82 | 13.89 | -2.08 | 15.32 | 17.26 | – | |
| Free cash flow | 0.73 | 2.94 | 4.53 | 5.73 | 11.37 | 9.27 | 15.15 | 12.81 | -3.06 | 12.38 | 14.88 | +36.9%/yr | |
| Capex | 0.23 | 0.39 | 0.37 | 0.29 | 0.99 | 0.90 | 0.79 | 0.77 | 1.15 | 1.70 | 1.95 | +24.8%/yr | |
| Dividends | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | 4.73 | 8.01 | 17.11 | 23.34 | 32.98 | 38.86 | 53.70 | 67.49 | 63.63 | 72.35 | 79.34 | +35.4%/yr | |
| Diluted shares (M) | 245 | 253 | 259 | 261 | 263 | 260 | 259 | 261 | 258 | 258 | 255 | +0.6%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 1.7 | 2.5 | 3.0 | 4.2 | 6.2 | 7.6 | 8.9 | 9.9 | 11.0 | 12.0 | 12.6 | +24.2%/yr | |
| Operating income | 0.0 | 0.1 | 0.6 | 1.2 | 2.9 | 2.8 | 4.3 | 3.8 | -0.2 | 4.2 | 4.8 | +95.6%/yr | |
| Net income | -0.1 | 0.3 | 2.1 | 1.2 | 2.7 | 2.3 | 3.3 | 3.6 | -0.5 | 4.0 | 4.4 | – | |
| Free cash flow | 0.2 | 0.7 | 1.2 | 1.5 | 3.0 | 2.4 | 3.9 | 3.3 | -0.8 | 3.2 | 3.8 | +37.7%/yr | |
| Buybacks | 0.0 | 0.0 | 0.4 | 0.2 | 0.5 | 1.4 | 0.0 | 0.4 | 1.2 | 2.0 | 2.0 | – | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | 1.1 | 2.1 | 3.2 | 3.8 | 6.7 | 7.5 | 10.9 | 13.7 | 11.2 | 12.3 | 13.6 | +$11.2B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 87.6 | 88.9 | 86.6 | 86.8 | 88.1 | 88.1 | 87.9 | 87.2 | 86.1 | 86.2 | 86.0 | -1.4 pts | |
| Operating margin | 0.6 | 5.0 | 20.8 | 28.8 | 46.0 | 36.7 | 48.2 | 38.8 | -2.1 | 34.8 | 38.0 | +34.2 pts | |
| Net margin | -6.6 | 10.6 | 68.8 | 28.3 | 43.7 | 30.9 | 37.2 | 36.7 | -4.9 | 32.9 | 35.0 | +39.5 pts | |
| FCF margin | 10.5 | 30.0 | 38.5 | 35.9 | 48.2 | 31.8 | 44.0 | 33.8 | -7.2 | 26.6 | 30.2 | +16.1 pts | |
| ROIC | – | – | 42.5 | 44.6 | 119.4 | 91.6 | 116.5 | 51.1 | -1.9 | 29.3 | 32.7 | – | |
| Return on equity | -9.7 | 13.0 | 47.3 | 19.3 | 31.2 | 23.2 | 23.9 | 20.6 | -3.3 | 21.2 | 21.8 | +30.9 pts | |
| R&D % of revenue | 61.6 | 53.2 | 46.5 | 42.1 | 26.5 | 25.6 | 28.4 | 32.0 | 32.9 | 32.6 | 31.0 | -29.0 pts | |
| Stock pay % of revenue | 14.1 | 11.8 | 10.7 | 8.7 | 6.9 | 5.8 | 5.5 | 5.9 | 6.3 | 5.7 | 5.5 | -8.4 pts | |
| Capex % of revenue | 3.3 | 4.0 | 3.1 | 1.8 | 4.2 | 3.1 | 2.3 | 2.0 | 2.7 | 3.6 | 3.9 | +0.3 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Quasi-Monopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- strong
- Cystic Fibrosis CFTR Modulators96.2%2 claims
- Hemoglobinopathies Gene Therapy (CASGEVY)2.3%2 claims
- Acute Pain (JOURNAVX)1.5%1 claim
- Rare endocrine diseases (PALSONIFY)0.0%1 claim
Moat claims
- Applies to
- Cystic Fibrosis CFTR Modulators
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
Patents protect TRIKAFTA/KAFTRIO through 2037 and ALYFTREK through 2039. Switching to ALYFTREK renews the protected franchise, but its lower royalty burden is disputed and does not itself strengthen patent control.
TRIKAFTA protection through 2037 and ALYFTREK protection through 2039 remain intact; Q2 ALYFTREK sales of $573.6 million show uptake of the newer protected medicine, but no new legal barrier was disclosed.
- CF product revenue$3.2B+11%
- TRIKAFTA/KAFTRIO revenue$2.5B-2%
- ALYFTREK revenue$574M+266%
- Patent challenges can weaken exclusion; the ALYFTREK royalty arbitration can also reduce the cash retained from protected sales.
- Older CF drugs lose protection earlier than TRIKAFTA and ALYFTREK; generic entry can change the treatment mix.
- Breakthrough non-modulator modalities (gene therapy, mRNA) reducing modulator demand
- FilingVertex FY2025 Form 10-K: product patent estate and protection periodsFeb 13, 2026
- FilingVertex Q2 2026 Form 10-Q: CF royalties and arbitrationAug 4, 2026
- NewsKrystal Biotech Q2 2026 results: investigational KB407Aug 3, 2026
- NewsVertex Q1 2026 results: VX-522 stopped after tolerability issuesMay 4, 2026
- Applies to
- Cystic Fibrosis CFTR Modulators
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
An extended long-term NHS England reimbursement agreement supports paid access to established CF medicines. Published terms do not establish exclusivity or an end date; payer renegotiation remains a risk.
ALYFTREK has reimbursed access in 25 countries. The NHS agreement provides long-term access, but published terms do not show stronger exclusion or a new duration.
- CF product revenue$3.2B+11%
- TRIKAFTA/KAFTRIO revenue$2.5B-2%
- ALYFTREK revenue$574M+266%
- ALYFTREK reimbursed countries25
- National payers renegotiate pricing or access terms
- Credible competing therapies weaken renewal economics
- Policy-driven price reductions lower contract value
- Applies to
- Hemoglobinopathies Gene Therapy (CASGEVY)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 5, 2026
CASGEVY has 12 years of US biologic regulatory exclusivity from its 2023 approval, protecting its own dossier through 2035. This does not block independently developed gene therapies; treatment-centre and conditioning requirements constrain its sales as well as entry.
The July US label expansion adds about 5,500 eligible children, but the 12-year exclusivity term still runs from the original 2023 approval.
- CASGEVY revenue$76M+151%
- CASGEVY infusions30
- CASGEVY first cell collections37
- Competing gene therapies / gene editing with better safety, simpler conditioning, or lower total cost
- Regulatory changes for cell/gene therapy manufacturing and patient support
- Applies to
- Hemoglobinopathies Gene Therapy (CASGEVY)
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
Product and manufacturing patents restrict copying of CASGEVY, but important CRISPR platform licences are non-exclusive or co-exclusive. The annual filing reports ToolGen infringement litigation in the US, UK and Netherlands; owned patents do not guarantee freedom to make the product.
Q2 CASGEVY sales reached $76.4 million, but shared platform licences and unresolved ToolGen litigation limit the case for stronger patent control. No new exclusion of competing platforms is established.
- CASGEVY revenue$76M+151%
- CASGEVY infusions30
- CASGEVY first cell collections37
- ToolGen litigation could require payments or restrict manufacturing even if Vertex product patents remain valid.
- Alternative editing modalities (base/prime editing) avoiding key patents
- FilingVertex Pharmaceuticals Incorporated Form 10-K (FY ended Dec 31, 2025)Feb 13, 2026
- Applies to
- Acute Pain (JOURNAVX)
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
Patent protection, Orange Book listing and long basic patent life support branded exclusivity, but large-market incentives attract challengers.
The basic JOURNAVX patent runs through 2040 and Q2 sales reached $49.6 million; the larger commercial launch does not extend patent protection or remove generic substitutes.
- JOURNAVX revenue$50M+313%
- JOURNAVX filled prescriptions535,000
- JOURNAVX covered lives260,000,000
- Paragraph IV challenges once listed
- Safety signals limiting broad use
- Applies to
- Rare endocrine diseases (PALSONIFY)
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 5, 2026
PALSONIFY composition-of-matter patents extend to 2037 in major markets. They protect paltusotine from direct copying, while other somatostatin drugs and surgery remain available.
The acquired product is approved in the US and EU and has basic patent protection through 2037; the September acquisition changes ownership rather than the strength of that protection.
- PALSONIFY net product revenue$24M
- PALSONIFY enrollment forms245
- PALSONIFY unique prescribers385
- Patent challenges and generic entry after protection ends.
- Competing oral or long-acting medicines reduce the convenience advantage.
- Payers prefer cheaper established therapies.
- FilingCrinetics FY2025 Form 10-KFeb 26, 2026
- NewsVertex completes Crinetics acquisitionSep 1, 2026
Profile change log
- Oct 5, 2026 · analyst revision
Extended the four existing end markets with genetic-therapy development, Medicaid outcomes-based reimbursement, non-opioid payment policy and pre-acquisition PALSONIFY adoption. Clarified low direct demand sensitivity to rates and stronger sensitivity of investment income and acquisition financing. No unverified dollar market sizes or competitor shares were added.
- Oct 5, 2026 · analyst revision
Replaced the unsupported NHS annual-report citation with the 2024 agreement announcement and removed assumed exclusivity. Added ALYFTREK royalty arbitration and ToolGen manufacturing-patent risk. Replaced CF collaboration names with an investigational genetic-therapy peer and separated generic analgesic competition from Lilly pipeline optionality. Qualified the uncontrolled renal trial evidence.
- Oct 5, 2026 · analyst revision
Added management, a sourced bull and bear debate, and four shared end markets. Separates non-cyclical clinical demand from reimbursement, currency, rates, regulation and acquisition risks.
- Oct 5, 2026 · business change
Added the September 1 Crinetics acquisition and PALSONIFY product category, its protected molecule and competing therapies. June revenue share is zero before ownership; Q3 will first disclose the consolidated sales and purchase accounting.
- Oct 5, 2026 · analyst revision
Removed the unsupported 72-75% CF market-share range: nearly three quarters of 97,000 patients is treatment penetration, not competitor share. Reclassified CASGEVY dossier exclusivity from a regulated rail to a specific legal claim, without changing strength, and removed abbreviated quotations. Added sourced trajectories and peer context.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
CFTR modulator therapies
Medicines that improve CFTR protein function in cystic fibrosis, in the US, Europe, Australia and Canada. Excludes antibiotics, pancreatic enzymes, symptomatic care and investigational genetic cures.
- Vertex Pharmaceuticals
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| VRTX | 99 | 86.0% | 38.0% | |
| Industry median | 17 | 69 | 72.9% | 22.1% |
| Sector median | 55 | 76 | 61.5% | 17.0% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Earlier diagnosis and approvals for younger children expand eligible treatment years.
- Longer patient survival supports a larger population receiving chronic therapy.
- National reimbursement agreements convert clinical eligibility into paid access.
- New combinations can improve convenience and CFTR function, supporting franchise renewal.
- Clinical need has low sensitivity to GDP; exchange rates have a moderate effect on multinational reported sales after hedging.
- Payer budgets and drug-price regulation can reduce net prices even with strong clinical demand.
- Patent invalidation or expiry opens direct copying. Royalty disputes can reduce suppliers' retained cash even when protection remains intact.
- An effective genetic cure could replace chronic modulators, although clinical and delivery risks remain.
- Ineligible mutations, intolerance and unequal reimbursement limit the reachable population.
- Supply and compliance failures can interrupt treatment. Rates affect suppliers' cash income and acquisition funding; payer policy has more direct influence on sales than current tariff costs.
Bulls & bears
Can Vertex turn its CF-funded research and acquisitions into durable sales outside CF while preserving the cash generation of its core franchise?
Arguments
What to watch
- 1CF portfolio, TRIKAFTA and ALYFTREK net sales, reimbursement access and ALYFTREK royalty arbitration.
- 2CASGEVY paid infusions versus cell collections, and JOURNAVX paid prescriptions and net sales.
- 3PALSONIFY net sales, post-acquisition borrowing, interest expense and cash, and research spending.
- 4Povetacicept approval and paid launch uptake; inaxaplin pivotal efficacy and safety.
Next check: November 2, 2026 Q3 results: Crinetics purchase accounting, sales and funding; November 30, 2026 povetacicept FDA target action date; AMPLITUDE interim analysis in early 2027.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 2, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 99/100 by <a href="https://www.findmymoat.com/stocks/XNAS:VRTX">Find My Moat</a> (as of September 2026)Request update
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