Net (loss) income (USD, millions)

Stock-based compensation expense (USD, millions)

Depreciation and amortization expenses (USD, millions)

Losses on equity securities (USD, millions)

Net cash (used in) provided by operating activities (USD, millions)

Purchases of available-for-sale debt securities (USD, millions)

Sales and maturities of available-for-sale debt securities (USD, millions)

Purchases of property and equipment (USD, millions)

Net payments related to finite-lived intangible assets (USD, millions)

Other investing activities (USD, millions)

Net cash used in investing activities (USD, millions)

Issuances of common stock under benefit plans (USD, millions)

Repurchases of common stock (USD, millions)

Payments in connection with common stock withheld for employee tax obligations (USD, millions)

Payments on finance leases (USD, millions)

Other financing activities (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of changes in exchange rates on cash (USD, millions)

Cash paid for income taxes (USD, millions)

Cash paid for interest (USD, millions)

Deferred income taxes (USD, millions)

124f8fa48010a5dfdc9699e928423eabb40ce836ca2afd2d134653ca6c646b0e

The steep plunge in operating income for Q2 2024 was primarily driven by a **dramatic increase in AIPR&D expenses**—notably, a **$4.4 billion expense related to the acquisition of Alpine Immune Sciences**, which surged the AIPR&D expenses from **$110.5 million in Q2 2023** to **$4,449.1 million in Q2 2024**. Additionally, **higher operating costs and increased expenditures in areas such as R&D and SG&A** contributed to the downturn, and while revenues grew modestly by **6%**, that increase was insufficient to offset these large expense shocks.  **[0000875320-24-000198_vrtx-20240630.htm:34]** **[0000875320-24-000193_ex-991_q22024.htm:0]** **[VRTX_3395774_7]** 

What caused operating income to plunge in Q2 2024?

The sharp decline in net income for Q2 2024 was primarily driven by a **one-time non-deductible AIPR&D expense of $4.4 billion** incurred during the acquisition of Alpine Immune Sciences, a massive jump from the **$110.5 million** in similar expenses in Q2 2023. This expense was compounded by **approximately $200 million in transaction-related compensation expenses**, increased **R&D and SG&A operating expenses** related to clinical and commercial development, and a **negative effective tax rate of -6.0%** which further amplified the loss.  **[0000875320-24-000198_vrtx-20240630.htm:34]** **[0000875320-24-000193_ex-991_q22024.htm:0]** **[0000875320-24-000178_vrtx-20240627.htm:1]** 

Why did net income turn significantly negative in Q2 2024?

The drastic decline in EPS in Q2 2024 was driven primarily by a **huge one-time acquired in-process research and development (AIPR&D) expense of $4.4 billion**—a dramatic increase from just **$110.5 million** in Q2 2023—that, along with an **operating loss of $(3.51) billion** (in contrast to Q2 2023’s operating income of $1.03 billion) and a **shift in the effective tax rate from 21.2% to (6.0%)**, severely impacted net income and EPS.  **[0000875320-24-000198_vrtx-20240630.htm:34]** **[0000875320-24-000193_ex-991_q22024.htm:0]** **[0000875320-24-000198_vrtx-20240630.htm:2]** **[VRTX_3395774_7]** 

What drove the drastic decline in EPS in Q2 2024?

Full-year net income turned negative in **FY 2024** primarily because of a dramatic increase in **AIPR&D expenses** – rising to **$4,628.4 million** from **$527.1 million** largely due to the acquisition of Alpine Immune Sciences – coupled with significantly higher operating costs (an **86% increase** in total expenses to **$11,253.0 million**, including increases in **R&D** and **SG&A** expenses). Additionally, a steep rise in the **GAAP effective tax rate** from **17.4%** to **315.5%**, which was driven by the impact of non-deductible AIPR&D expenses, contributed to turning an operating profit into a loss, resulting in net income falling from a profit of **$3,619.6 million** in FY 2023 to a net loss of **$(535.6) million** in FY 2024.  **[0000875320-25-000053_vrtx-20241231.htm:131]** **[0000875320-25-000029_ex-991_q42024.htm:1]** **[0000875320-25-000053_vrtx-20241231.htm:168]** 

Why did full-year net income turn negative in FY 2024?

1182bd951948ad096953c43d1f30a1da83aac97bdb1f9afe0a128df1a7ba4ac3

The sharp decline in cash and cash equivalents in Q2 2024 was primarily driven by several key factors. **Vertex Pharmaceuticals** spent approximately **$5 billion** in cash to acquire Alpine Immune Sciences, which alone significantly reduced liquidity. Additionally, cash flows used in operating activities worsened to **$(2,447.0) million** (compared to a positive cash flow in the previous period) due to costs associated with the acquisition. Furthermore, **$2,600.1 million** was used in investing activities for net purchases of available-for-sale debt securities, and over **$300 million** was deployed for share repurchases, which further depleted cash reserves.  **[0000875320-24-000198_vrtx-20240630.htm:40]** **[0000875320-24-000193_ex-991_q22024.htm:0]** **[VRTX_3395774_7]** 

Why did cash and cash equivalents drop so sharply in Q2 2024?

The surge in Total assets in Q1 2024 was primarily driven by a significant increase in **long-term marketable securities**, which rose from **$2,497.8 million** to **$4,381.4 million** as a result of net purchases amounting to **$2.1 billion**. Additionally, increases in **deferred tax assets** (from **$1,812.1 million** to **$1,963.0 million**) and **operating lease assets** (from **$293.6 million** to **$312.9 million**) further contributed to the growth, despite a decrease in cash and cash equivalents from **$10,369.1 million** to **$9,158.0 million**.  **[0000875320-24-000139_vrtx-20240331.htm:3]** **[0000875320-24-000139_vrtx-20240331.htm:34]** 

What drove the surge in Total assets in Q1 2024?

The dramatic drop in **long-term finance lease liabilities** in Q3 2024 is primarily due to the **reclassification of the corporate headquarters leases** from finance leases to operating leases. This change followed the **amendments to the lease agreements in August 2024**, which extended the lease termination dates to **June 2044**, meaning the leases no longer met the criteria for finance lease classification and were instead recorded under **long-term operating lease liabilities**.  **[0000875320-24-000223_vrtx-20240930.htm:23]** **[0000875320-24-000223_vrtx-20240930.htm:13]** **[0000875320-24-000223_vrtx-20240930.htm:24]** 

Why did Long-term finance lease liabilities drop so dramatically in Q3 2024?

The spike in Total liabilities in Q3 2024 was primarily driven by an increase in **long-term operating lease liabilities**, which jumped from **$348.6 million** at the end of 2023 to **$1,588.9 million** as of Q3 2024. Additionally, **accrued expenses** rose from **$2,655.3 million** to **$3,219.7 million**, and **other long-term liabilities** saw a modest increase from **$877.7 million** to **$933.3 million**. These changes were likely influenced by new lease agreements, the reclassification of lease obligations, and heightened operational activities related to new product launches and potential acquisitions.  **[0000875320-24-000223_vrtx-20240930.htm:3]** 

What factors contributed to the spike in Total liabilities in Q3 2024?

e84653165f48bb08442a4d62adb657f1b99811c0d15b2cd2413c63b7a2a2d360

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Deferred tax assets (USD, millions)

Operating lease assets (USD, millions)

Long-term marketable securities (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term operating lease liabilities (USD, millions)

Long-term finance lease liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total shareholders’ equity (USD, millions)

Total liabilities and shareholders’ equity (USD, millions)

e0f9b327d0128062d15654baa9fd21ff3f89c7ecc9583edbec62afa439b8d606

Product Revenues, Net (USD, millions)

Cost of Sales (USD, millions)

Research and Development Expenses (USD, millions)

Acquired In-Process Research and Development Expenses (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Change in Fair Value of Contingent Consideration (USD, millions)

Total Costs and Expenses (USD, millions)

(Loss) Income from Operations (USD, millions)

Interest Income (USD, millions)

Interest Expense (USD, millions)

Other Expense, Net (USD, millions)

(Loss) Income Before Provision for Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net (Loss) Income (USD, millions)

Net (Loss) Income per Common Share, Basic (USD)

Net (Loss) Income per Common Share, Diluted (USD)

Shares Used in Per Share Calculations, Basic (millions)

Shares Used in Per Share Calculations, Diluted (millions)

dc20b615667af57044102e5dc83072949bbcccfd8a02cc0be01ff7d47590ca69

b631818797560b3869e01b73dad6d6ba162348b7ba81a76d9ff7e90a9dfc5f86

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

a7267512d6cbce8053d38472c30ec43e6039626a7d74eaa05a81b621f87c105d

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

342d7ce2687515839e4999e3873152a89ca315ae5067b49a892746410ee7f30b

Number of approved CF medicines (count)

Number of approved therapies for SCD and TDT (count)

Number of global Phase 3 clinical trials with completed enrollment for CASGEVY in children 5 to 11 years of age with SCD or TDT (count)

Number of authorized treatment centers for CASGEVY (count)

Number of participants in the Phase 1/2/3 T1D trial (count)

53f88d17875e161ae92521ea161e91f5fd327e6851eb5ce1ba3386412aaa0486

United States

Europe

Other

Total Revenues Outside of the United States

Total Revenue

f2cb670cb68c84895103af9b590e89eba1a985fa2a5fa72847bdbfad9e17f362

TRIKAFTA/KAFTRIO

KALYDECO

ORKAMBI

SYMDEKO/SYMKEVI

Other Revenues

Other CF Products

- INCIVEK

Royalty Revenues

Collaborative Revenues

ALYFTREK

CASGEVY

JOURNAVX

6e51ca49d544f88210eeb583f185810463e28885da23efbbe83296656322a366

VERTEX PHARMACEUTICALS INC / MA (VRTX)

Financials