[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q2 and H1 2025 and 2024 show a significant net income increase in 2025, driven by the absence of a large 2024 AIPR&D expense, with growing assets and equity [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q2 2025 net income of **$1.03 billion** contrasts sharply with a **$3.59 billion** net loss in Q2 2024, primarily due to the non-recurrence of a **$4.4 billion** AIPR&D expense Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $2,964.7 | $2,645.6 | 12.1% | $5,734.9 | $5,336.2 | 7.5% | | **Income (Loss) from Operations** | $1,151.1 | $(3,514.7) | N/M | $1,781.2 | $(2,375.2) | N/M | | **Net Income (Loss)** | $1,032.9 | $(3,593.6) | N/M | $1,679.2 | $(2,494.0) | N/M | | **Diluted EPS** | $3.99 | $(13.92) | N/M | $6.48 | $(9.66) | N/M | - The significant net loss in Q2 and H1 2024 was primarily driven by a **$4.4 billion** Acquired In-Process R&D (AIPR&D) expense from the acquisition of Alpine Immune Sciences[10](index=10&type=chunk)[37](index=37&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$24.04 billion** from **$22.53 billion** at year-end 2024, with cash and equivalents at **$12.03 billion** and shareholders' equity growing to **$17.18 billion** Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $4,972.2 | $4,569.6 | | **Total current assets** | $10,427.9 | $9,596.4 | | **Total assets** | $24,036.7 | $22,533.2 | | **Total current liabilities** | $4,138.4 | $3,564.6 | | **Total liabilities** | $6,861.3 | $6,123.6 | | **Total shareholders' equity** | $17,175.4 | $16,409.6 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow generated **$1.89 billion**, a significant improvement from **$2.45 billion** cash used in H1 2024 due to acquisition expenses, with financing activities using **$1.03 billion** for share repurchases Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $1,892.0 | $(2,447.0) | | **Net cash used in investing activities** | $(540.3) | $(2,600.1) | | **Net cash used in financing activities** | $(1,029.6) | $(716.1) | | **Net increase (decrease) in cash** | $409.8 | $(5,781.3) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies and significant financial events, including the **$5.0 billion** Alpine acquisition's **$4.4 billion** AIPR&D charge in 2024, a **$379.0 million** intangible asset impairment in Q1 2025, and **$4.6 billion** remaining share repurchase authorization - The acquisition of Alpine Immune Sciences on May 20, 2024, for approximately **$5.0 billion** in cash was accounted for as an asset acquisition, leading to a **$4.4 billion** charge to Acquired in-process research and development (AIPR&D) in Q2 2024[36](index=36&type=chunk)[37](index=37&type=chunk) - In Q1 2025, the company recorded a full intangible asset impairment charge of **$379.0 million** after concluding that its VX-264 clinical program for type 1 diabetes will not advance further[78](index=78&type=chunk) - As of June 30, 2025, Vertex had a total of **$4.6 billion** remaining authorization under its share repurchase programs[81](index=81&type=chunk)[82](index=82&type=chunk) - A disagreement exists with a third party regarding the royalty rate for ALYFTREK, with Vertex believing the rate is **4%** while the third party claims it should be in the high-single digits, requiring discussions to resolve the matter[100](index=100&type=chunk)[102](index=102&type=chunk) Product Revenues, Net - Six Months Ended June 30 (in millions) | Product | 2025 | 2024 | | :--- | :--- | :--- | | TRIKAFTA/KAFTRIO | $5,086.6 | $4,932.8 | | ALYFTREK | $210.7 | — | | Other product revenues | $406.9 | $403.4 | | **Total** | **$5,704.2** | **$5,336.2** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 net product revenue growth to **$2.9 billion**, driven by strong demand and new launches, pipeline progress, the significant impact of the 2024 Alpine acquisition on expenses, and a strong liquidity position with **$12.0 billion** in cash and marketable securities [Overview and Business Updates](index=25&type=section&id=Overview%20and%20Business%20Updates) Vertex, a global biotechnology company with seven approved medicines, provides updates on expanded reimbursement for ALYFTREK and CASGEVY, strong initial uptake for JOURNAVX with over **110,000** prescriptions, and pipeline advancements for zimislecel, povetacicept, and suzetrigine, while discontinuing the VX-993 acute pain program - The company has seven approved medicines, including five for Cystic Fibrosis (CF), one for Sickle Cell Disease (SCD) and Beta Thalassemia (TDT), and one for acute pain[116](index=116&type=chunk) - Since its launch in March, the new acute pain drug JOURNAVX has had over **110,000** prescriptions written and filled, with covered access for nearly **150 million** individuals in the U.S[125](index=125&type=chunk) - Pipeline progress includes plans for global regulatory submissions for zimislecel (T1D) in 2026 and a potential accelerated approval filing for povetacicept (IgAN) in the first half of 2026[131](index=131&type=chunk)[140](index=140&type=chunk) - The company will not advance VX-993 in acute pain based on Phase 2 results but will prioritize suzetrigine for diabetic peripheral neuropathy, expecting to complete enrollment in two Phase 3 trials by the end of 2026[129](index=129&type=chunk)[134](index=134&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Total revenues for Q2 2025 increased 12% to **$2.96 billion**, driven by an 11% rise in net product revenues, with U.S. revenues growing 13% due to higher pricing and demand, while operating expenses were significantly lower due to the non-recurrence of the **$4.4 billion** AIPR&D charge from the Alpine acquisition, and R&D expenses for H1 2025 rose 12% to **$1.96 billion**, reflecting investment in the advancing pipeline, and SG&A expenses increased 15% in H1 2025 to support the launch of JOURNAVX Q2 2025 vs Q2 2024 Revenue Breakdown (in millions) | Product | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | TRIKAFTA/KAFTRIO | $2,551.1 | $2,449.2 | 4% | | ALYFTREK | $156.8 | — | N/M | | Other product revenues | $236.1 | $196.4 | 20% | | **Product revenues, net** | **$2,944.0** | **$2,645.6** | **11%** | - R&D expenses increased **12%** in H1 2025 to **$1.96 billion**, driven by advancing mid- and late-stage clinical programs, including those for povetacicept, CF, T1D, and pain[159](index=159&type=chunk)[162](index=162&type=chunk)[165](index=165&type=chunk) - SG&A expenses rose **14%** in Q2 2025 primarily due to increased commercial investment to support the U.S. launch of JOURNAVX[168](index=168&type=chunk) - The effective tax rate for H1 2025 was **16.6%**, compared to **(18.1)%** in H1 2024, with the 2024 rate distorted by the non-deductible **$4.4 billion** AIPR&D expense from the Alpine acquisition[85](index=85&type=chunk)[176](index=176&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Vertex ended Q2 2025 with a strong liquidity position, holding **$12.0 billion** in cash, cash equivalents, and marketable securities, up from **$11.2 billion** at year-end 2024, driven by **$1.9 billion** in cash from operations in H1 2025, partially offset by **$1.0 billion** used for financing activities, mainly share repurchases Financial Position (in billions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total cash, cash equivalents & marketable securities** | $12.0 | $11.2 | | **Total working capital** | $6.3 | $6.0 | - Cash from operating activities was **$1.9 billion** in H1 2025, compared to a use of **$2.4 billion** in H1 2024, which was impacted by the Alpine acquisition[179](index=179&type=chunk)[180](index=180&type=chunk) - Financing activities in H1 2025 used **$1.0 billion**, primarily for share repurchases and payments related to employee stock plans[182](index=182&type=chunk) - Significant future capital requirements include operating expenses, income taxes, royalties, lease obligations, and potential milestone payments from business development activities[188](index=188&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the disclosures about market risk from the company's 2024 Annual Report on Form 10-K, with no new information provided - The company refers to its 2024 Annual Report on Form 10-K for information regarding quantitative and qualitative disclosures about market risk, indicating no material changes during the quarter[190](index=190&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to the company's internal control over financial reporting during the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[191](index=191&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the second quarter of 2025[192](index=192&type=chunk) [Part II. Other Information](index=38&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently subject to any material legal proceedings - As of the filing date, Vertex is not subject to any material legal proceedings[193](index=193&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes from the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[194](index=194&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity during Q2 2025, with **868,730** shares repurchased at an average price of **$454.12** per share under its publicly announced programs Share Repurchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 211,469 | $485.93 | | May 2025 | 350,138 | $441.09 | | June 2025 | 307,123 | $447.07 | | **Total Q2** | **868,730** | **$454.12** | - As of June 30, 2025, the approximate dollar value of shares that may yet be purchased under the company's plans or programs is **$4.57 billion**[199](index=199&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company discloses the adoption of Rule 10b5-1 trading plans by two individuals during Q2 2025: EVP & CFO Charles F. Wagner, Jr. and Director Sangeeta Bhatia - During Q2 2025, EVP & CFO Charles F. Wagner, Jr. and Director Sangeeta Bhatia adopted Rule 10b5-1 trading plans for the sale of company securities[200](index=200&type=chunk)[201](index=201&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications under the Sarbanes-Oxley Act and XBRL data files

Shares of Vertex Pharmaceuticals sank 15% after the drugmaker announced a study showed its experimental pain medicine was not successful, and it would no longer move forward with its development. https://t.co/HZBNqkc09W ...

Core Viewpoint - Vertex Pharmaceuticals Inc reported better-than-expected earnings for the second quarter, with revenue of $2.97 billion exceeding estimates of $2.90 billion and adjusted EPS of $4.52 surpassing estimates of $4.29 [1][2] Financial Performance - The company's revenue for the second quarter was $2.97 billion, compared to estimates of $2.90 billion [1] - Adjusted EPS was reported at $4.52, exceeding the expected $4.29 [1] Product Performance - Vertex's three product launches—ALYFTREK, JOURNAVX, and CASGEVY—contributed to strong revenue growth [2] - The company is advancing its clinical programs alongside product launches [2] Clinical Study Results - Vertex announced topline results from a Phase 2 study of VX-993 for treating acute pain after bunionectomy surgery, which did not show statistically significant improvement on the primary endpoint [3] - The lack of significant results from the clinical study appears to have pressured the company's shares [3] Stock Performance and Analyst Ratings - Following the earnings announcement, Vertex Pharmaceuticals shares fell 18.8% to $383.40 [3] - Analysts adjusted their price targets for Vertex Pharmaceuticals, with several maintaining their ratings but lowering targets significantly [4][9] - Price target adjustments include: - HC Wainwright & Co. from $550 to $478 [9] - Morgan Stanley from $460 to $439 [9] - Stifel from $494 to $455 [9] - Cantor Fitzgerald from $535 to $485 [9] - BMO Capital from $557 to $530 [9] - UBS from $582 to $553 [9] - RBC Capital from $430 to $405 [9] - Scotiabank from $442 to $438 [9] - Truist Securities from $520 to $490 [9]

Core Insights - Vertex Pharmaceuticals reported adjusted earnings of $4.52 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $4.24, and a significant improvement from an adjusted loss of $12.83 per share in the same quarter last year due to the $4.9 billion acquisition of Alpine Immune Sciences [1][7] - Total revenues for Q2 reached $2.96 billion, surpassing the Zacks Consensus Estimate of $2.89 billion, marking a 12% year-over-year increase driven by strong sales of Trikafta/Kaftrio and contributions from ongoing product launches [2][5] - Vertex's stock has increased by 17.3% year-to-date, significantly outperforming the industry average of 0.2% [4] Financial Performance - U.S. revenues rose 14% year over year to $1.85 billion, while international sales increased 8% to $1.12 billion, supported by strong demand and the launch of Casgevy [5] - Trikafta generated $2.55 billion in sales, a 4.2% increase year over year, narrowly missing the consensus estimate of $2.56 billion [8] - Alyftrek, a newly approved CF treatment, generated $156.8 million in Q2, up from $53.9 million in Q1 2025, indicating strong uptake among eligible patients [9] Product Revenue Breakdown - Total product revenues included sales from Trikafta/Kaftrio, Alyftrek, and other products, with Casgevy sales reaching $30.4 million, reflecting a 114.1% sequential increase [10] - Journavx, a new pain drug, generated $12 million in sales in Q2, receiving positive feedback from both physicians and patients [12] Cost and Guidance - Adjusted R&D expenses increased by 25.9% year over year to $878.1 million, while SG&A expenses rose 28.2% to $359.4 million due to investments in clinical studies and commercial capabilities [13] - Vertex maintained its total revenue guidance for 2025, expecting revenues between $11.85 billion and $12 billion, driven by growth in CF medicines and new product launches [15] Pipeline Developments - Vertex announced disappointing results for VX-993, a pain drug, which failed to meet its primary endpoint in a phase II study, leading to the decision to halt its development as a monotherapy [18][19] - The company continues to advance its pipeline, including studies for povetacicept and zimislecel, targeting various diseases [22][23]

Group 1 - U.S. stock futures are higher, with Dow futures gaining around 0.1% [1] - Inspire Medical Systems, Inc. shares fell 25% to $98.00 in pre-market trading after reporting second-quarter results and cutting FY25 guidance below estimates [1] - Ichor Holdings, Ltd. declined 24.3% to $15.24 in pre-market trading due to worse-than-expected second-quarter adjusted EPS results and below-estimate third-quarter adjusted EPS guidance [3] Group 2 - Gartner, Inc. shares fell 15% to $287.20 after issuing soft FY25 guidance [3] - Vertex Pharmaceuticals Incorporated declined 14.5% to $403.85 following second-quarter financial results and Vx-993 Phase 2 trial results [3] - Semrush Holdings, Inc. fell 14.1% to $7.91 after reporting a second-quarter EPS miss [3] - Navitas Semiconductor Corporation shares dropped 14.1% to $6.92 after issuing third-quarter sales guidance below estimates [3] - Kyndryl Holdings, Inc. fell 12.2% to $32.21 after reporting a first-quarter revenue miss [3]

Core Viewpoint - Vertex Pharmaceuticals (VRTX.US) experienced a significant pre-market decline of over 14% following the announcement of its second-quarter financial results and the failure of a key clinical trial [1] Financial Performance - The company's non-GAAP net profit for the second quarter was $4.52 per diluted share, compared to a loss of $12.83 per share in the same period last year [1] - Revenue for the three months ended June 30 increased from $2.65 billion to $2.96 billion year-over-year, surpassing analyst expectations of $2.91 billion [1] Clinical Trial Update - Vertex announced that the Phase II study of VX-993 for the treatment of postoperative pain following bunion surgery did not meet its primary endpoint [1] - As a result of these findings, the company stated it will not pursue VX-993 further as a monotherapy for acute pain [1]

Company Performance - Vertex Pharmaceuticals reported quarterly earnings of $4.52 per share, exceeding the Zacks Consensus Estimate of $4.24 per share, and a significant improvement from a loss of $12.83 per share a year ago, representing an earnings surprise of +6.60% [1] - The company posted revenues of $2.96 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.59% and showing growth from $2.65 billion in the same quarter last year [2] - Over the last four quarters, Vertex has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Vertex shares have increased approximately 14.8% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $4.55 on revenues of $3.03 billion, and for the current fiscal year, it is $17.78 on revenues of $11.91 billion [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Vertex belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Vertex's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Future Expectations - The sustainability of Vertex's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Vertex was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Vertex Pharmaceuticals reported revenue of $2,960,000,000 for Q2 2025, representing a 12% growth compared to Q2 2024 [5][41] - Non-GAAP operating income for Q2 2025 was $1,330,000,000, compared to a non-GAAP operating loss of $3,150,000,000 in Q2 2024 [43] - Net income for Q2 2025 was $1,200,000,000, a significant improvement from a net loss of $3,300,000,000 in the previous year [43] - Non-GAAP earnings per share were $4.52, compared to a loss per share of $12.83 in Q2 2024 [43] Business Line Data and Key Metrics Changes - The CF franchise continued to perform strongly, contributing to revenue growth driven by ongoing patient demand and new product launches [41][30] - CASJEVY generated $30,000,000 in revenue, while GERNAVIX contributed $12,000,000 in Q2 2025 [41] - The company is seeing rapid uptake of ElefTrek among patients new to CFTR modulators and those returning to therapy [32] Market Data and Key Metrics Changes - Revenue outside the U.S. increased by 8% year-on-year, supported by healthy CF growth and contributions from CASJEVY [41] - The launch of GERNAVIX has seen positive reactions from both physicians and patients, with approximately 150 million lives covered by payer access as of mid-July [36][37] Company Strategy and Development Direction - Vertex is focused on expanding its patient reach through multiple new product launches and advancing its R&D pipeline [5][29] - The company aims to secure DPN as its first PNP indication while continuing discussions with the FDA for broader indications [60][61] - Vertex is prioritizing investments in marketing and commercial initiatives to support the launch of GERNAVIX and other products [48][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong revenue growth for 2025, reiterating guidance for total revenue in the range of $11.85 to $12,000,000,000 [44][46] - The company anticipates multiple regulatory submissions in 2026 and early 2027, with potential approvals and launches to follow [29][49] - Management highlighted the importance of ongoing discussions with the FDA to broaden indications for pain management products [60][61] Other Important Information - Vertex announced the retirement of its Chief Scientific Officer, David Alschuler, effective August 1, 2026, with Mark Bunnich set to transition into the role [8][9] - The company is advancing multiple Phase III programs that are poised for accelerated or traditional approval [28] Q&A Session Summary Question: Can you provide insights on the commercial efforts behind GERNAVIX? - Management indicated that the increase in commercial efforts was a reaction to positive feedback and payer coverage progress [54] Question: What is the strategy for pain management now that a broad PNP label is not being pursued? - Management confirmed the focus on securing the DPN indication first, with plans to broaden the label over time [60][61] Question: How is the real-world evidence generation for GERNAVIX progressing? - Management reported that formulary coverage is going well, with several large health systems adding GERNAVIX faster than expected [72] Question: What is the plan for the patient support programs as payer coverage increases? - Management stated that the patient support program will be retired as national coverage is secured [76]

Financial Data and Key Metrics Changes - Vertex Pharmaceuticals reported total revenue of $2,960,000,000 for Q2 2025, reflecting a 12% increase compared to Q2 2024 [5][41] - Non-GAAP operating income for Q2 2025 was $1,330,000,000, a significant recovery from a non-GAAP operating loss of $3,150,000,000 in Q2 2024 [44] - Net income for Q2 2025 was $1,200,000,000, compared to a net loss of $3,300,000,000 in the same quarter of the previous year [44] - Non-GAAP earnings per share were $4.52, a turnaround from a loss per share of $12.83 in Q2 2024 [44] Business Line Data and Key Metrics Changes - The CF franchise continued to perform strongly, with revenue growth driven by ongoing patient demand and the launch of new products [41][42] - CASJEVY contributed $30,000,000 to total revenue, while GERNAVIX added $12,000,000 [42] - The company is focused on expanding its CFTR modulator portfolio to younger age groups and developing new regimens [12][29] Market Data and Key Metrics Changes - Revenue outside the U.S. increased by 8% year-on-year, supported by healthy CF growth and contributions from CASJEVY [42] - The company has secured reimbursement for AlifTrek in multiple regions, including the U.S., U.K., EU, and Canada [11][12] Company Strategy and Development Direction - Vertex is focused on commercialization across multiple disease areas and expanding patient reach through new product launches [5][6] - The company is advancing its R&D pipeline with four programs in pivotal development and plans to initiate a fifth program in primary membranous nephropathy [6][20] - Vertex aims to secure DPN as its first PNP indication while continuing discussions with the FDA for broader indications [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong revenue growth in 2025, reiterating guidance for total revenue between $11.85 billion and $12 billion [45][47] - The company anticipates continued growth from its CF medicines and expects to see increased revenue contributions from GERNAVIX in the second half of the year [46][47] Other Important Information - Vertex announced a new $4,000,000,000 share repurchase program, building on an existing program [44] - The company is preparing for multiple regulatory submissions in 2026 and early 2027, with several Phase III programs underway [27][28] Q&A Session Summary Question: On pain and GERNAVIX commercialization efforts - Management indicated that the increase in commercial efforts for GERNAVIX was a reaction to positive feedback and payer coverage progress [54] Question: Strategy for pain indications and gross to net expectations - The company plans to secure the DPN indication first and then explore broader indications, with gross to net expected to normalize as patient support programs are phased out [62] Question: Insights on GERNAVIX real-world evidence generation - Progress in real-world evidence generation is going well, with hospitals and health systems adopting GERNAVIX faster than expected [75] Question: Plans for POVY and prioritization of indications - The company plans to launch POVY with an auto injector for IGAN and prioritize indications based on unmet need and emerging data [80][82] Question: Commercial lives with unrestricted access for GERNAVIX - Management is working on expanding payer coverage and expects to see increased access as negotiations progress [94]

Clinical Trial & Drug Development - Vertex's next-generation pain drug, VX993, failed in a phase 2 trial, leading to the discontinuation of its development [1] - Pain management is highlighted as an increasingly significant area for Vertex [1] - Javics, a drug approved earlier in the year, is showing a stronger launch than anticipated in the previous quarter [2] Leadership Transition - David Oler, the chief scientific officer, will be retiring next year [2] - The current head of research will be promoted to chief scientific officer upon Oler's departure [3] Stock Performance - Vertex's stock is down 11% [3]