For Vertex Pharmaceuticals, the first quarter of 2025 brought good news and bad news. On the bright side, early momentum for newly launched cystic fibrosis (CF) med Alyftrek and pain treatment Journavx contributed to a U.S. revenue boost and the company's increased 2025 outlook.
But, on the other hand, a unique generics situation in Russia weighed on the biopharma's international sales.
The mixed bag evened out to a 3% year-over-year revenue gain to $2.77 billion, with $1.66 billion coming from the U.S., where Vertex grew sales by 9%.
Outside of the U.S., the company's $1.11 billion in first-quarter sales represented a 5% slide from the same period last year.
Despite “strong patient demand” in markets outside of the U.S., Vertex's international revenue was impacted by an “expected” decline in Russia, where the company is “experiencing violation of its intellectual property rights,” Vertex explained in its earnings release.
“Vertex has strong intellectual property protection for its medicines around the world and believes this violation in Russia is a limited and isolated matter,” the company said.
The situation boils down to an unauthorized generic of Vertex’s top-selling CF med Trikafta marketed in Russia. Since January, the Russian Ministry of Health has been switching children who take Trikafta to an Argentina-made generic called Trilexa, independent Russian news publication Okho reported in March, citing stories from parents of patients. The drug has not been tested in clinical studies, and the move has prompted protests within the CF community, according to Okho.
As that situation plays out, Vertex’s quarterly revenues came in below consensus expectations of of $2.83 billion, Evercore ISI analysts wrote in a note to clients. BMO analyst Evan Seigerman also cited the “onetime headwinds” from Russia, plus “new product launch noise,” as reasons for the revenue miss.
Still, given the trajectory of its two new launches—plus “contributed uptake” of CRISPR Therapeutics-partnered sickle cell and beta thalassemia gene therapy Casgevy—Vertex opted to slightly boost its full-year revenue guidance. Now, the company is eyeing 2025 revenues of $11.85 billion to $12 billion, up from prior guidance of $11.75 billion to $12 billion.
Journavx's journey
Vertex’s non-opioid Journavx was approved in January to much fanfare considering its unique position as a nonaddictive pain management treatment. The company quickly set out to begin shipments and has since racked up more than 20,000 prescriptions, Vertex reported, although revenue from the drug was “insignificant” during the first quarter because it's still so early in the launch. In his note to clients, Seigerman praised the company's access efforts and said he expects more revenue contributions from the med in the second half of the year.
Ensuring patients have access to Journavx is especially key given the cheap generic opioids that currently dominate the pain market.
Alyftrek, meanwhile, won a December FDA approval as a once-daily triple combination for CF patients that have certain mutations. The drug has “potential to set a new standard of CF care,” according to Vertex, which looks to transition patients currently taking established Trikafta over to Alyftrek. So far, the company is seeing “enthusiastic feedback” from physicians and patients, it said in its earnings presentation. The company racked up $53.9 million in Alyftrek revenues in the first quarter.