Vertex Misses Q1, Raises Guidance, Faces IP Issues

Vertex Pharmaceuticals reported mixed Q1 2025 results, with revenue rising 3% year-over-year to $2.77 billion but missing analyst expectations, while adjusted EPS of $4.06 fell short of estimates and declined from the prior year. The company absorbed a $379 million impairment charge related to its diabetes program and saw higher R&D and commercial expenses, including for the launch of its pain drug Journavx, which has seen strong early uptake. U.S. sales, driven by cystic fibrosis treatments, rose 9%, but international revenue dropped due to intellectual property issues in Russia. Despite these challenges, Vertex raised the lower end of its 2025 revenue guidance, reflecting ongoing confidence in its cystic fibrosis portfolio and new launches. Analysts remain optimistic about Vertex's long-term growth due to its robust pipeline and market presence, even as short-term profitability is pressured. Shares have outperformed the broader market in the past year, with some analysts raising their stock targets.