Q3 2025 Vertex Pharmaceuticals Inc Earnings Call

Speaker #1: Good day and welcome to the VERTEX PHARMACEUTICALS third quarter of 2025 earnings call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Ms. Susie Lisa.

Speaker #1: Please go ahead, ma'am.

Speaker #2: Good Good evening, all. My name is Susie Lisa, and as the Senior Vice President of Investor Relations, it is my pleasure to welcome you to our third quarter 2025 financial results conference call.

Speaker #2: On tonight's call, making prepared remarks, we have Dr. Reshma Kewalramani, Vertex's CEO and President; Duncan McKechnie, Chief Commercial Officer; and Charlie Wagner, Chief Operating and Financial Officer.

Speaker #2: We recommend that you access the webcast slides as you listen to this call. The call is being recorded and a replay will be available on our website.

Speaker #2: We will make forward-looking statements on this call that are subject to the risks and uncertainties discussed in detail in today's press release and in our filings with the Securities and Exchange Commission.

Speaker #2: These statements, including without limitation, those regarding VERTEX's marketed medicines for cystic fibrosis, sickle cell disease, beta thalassemia, and moderate to severe acute pain, are pipeline and VERTEX's future financial performance, are based on management's current assumptions, actual outcomes, and events could differ materially.

Speaker #2: I would also note that select financial results and guidance that we will review on the call this evening are presented on a non-GAAP basis.

Speaker #2: I'll now turn the call over to Reshma.

Speaker #3: Thanks, Susie. Good evening, all, and thank you for joining us on the call today. VERTEX delivered strong performance across the board in Q3, with 3.08 billion in revenue, reflecting double-digit growth versus Q3 2024.

Speaker #3: As we continue to extend our leadership in CF, we're also diversifying our revenue base by product and by geography, with the growing global momentum of CASCEVI and the broad uptake of GERNAVIX in acute pain, across a wide range of prescribers, pain types, and settings of care.

Speaker #3: Concurrently, we are forward planning for the fourth vertical of VERTEX's growth: centered on renal diseases and povitacicept in multiple indications, starting with POVI in immunoglobulin A nephropathy, or IGAN.

Speaker #3: Moving to the pipeline and starting with CF, our longstanding goals in CF have been threefold: one, bring forward a medicine that can treat CF patients who make some amount of CFTR protein; two, bring forward a medicine that restores CFTR function to normal levels, as measured by SWEC chloride; and to do so, from as early in life as possible, so patients have the potential to live a long and healthy life like people who carry just one CF allele.

Speaker #3: And three, bring forward a medicine for the last 5% of CF patients who do not make any CFTR protein at all. We are making progress on all three fronts.

Speaker #3: First, a LIVTREK treats more mutations than TRIKAFTA. The number of patients newly eligible for CFTR modulator that treats the underlying cause of their disease is approximately 400 more patients in the US and approximately 4,000 more patients in the EU than TRIKAFTA.

Speaker #3: In total, 95% of all patients are eligible or will be eligible for a LIVTREK, as we make our way to lower age groups. Second, a LIVTREK, which launched in the U.S. late last year and is launching in Europe now, has seen a strong response from patients and physicians who are excited for a once-daily medicine that can bring sweat chloride levels down in patients ages 6+ to the lowest levels achieved of any CFTR modulator in this age group.

Speaker #3: Two additional points to make on SWEC chloride: we recently completed the pivotal study for TRIKAFTA for the 1 to 2-year-old patient population, and the results are remarkable.

Speaker #3: The study's primary endpoint was safety, and the data were consistent with the established safety profile of this medicine. The secondary endpoint was reduction in SWEC chloride.

Speaker #3: The baseline SWEC chloride was about 100 millimoles per liter, and over the course of the 24-week study, there was a mean reduction of more than 70 millimoles per liter from baseline through week 24.

Speaker #3: Furthermore, nearly 70% of patients in the study achieved levels of SWEC chloride below the 30 millimoles per liter threshold, the level considered normal. This magnitude of SWEC chloride improvement is unprecedented, and the largest reduction we have seen with any CFTR modulator in any population to date.

Speaker #3: We are on track to make global regulatory submissions for TRIKAFTA in this population of 1 to 2-year-olds in the first half of 2026. Additionally, as we serially innovate, we continue to develop new CFTR regimens with the aim of reaching our longstanding objective of bringing the majority of patients of any age with CF to normal levels of SWEC chloride.

Speaker #3: As I just discussed with the TRIKAFTA 1 to 2-year-old study, we are already there in our youngest patients, and in our LIVTREK Phase 3 study of 6 to 11-year-olds, more than 50% of patients got to normal levels of SWEC chloride.

Speaker #3: VX828, our next-gen 3.0 CFTR corrector, is the most efficacious we have ever studied in vitro to enter the clinic. I am pleased to share we have now initiated the CF cohort in the VX828 study, and third, regarding our final goal, VX522, which we're developing for the 5,000 or so patients who cannot benefit from our CFTR modulators, we have resumed enrollment and dosing in the MAD portion of that Phase 1, 2 study.

Speaker #3: Moving then to pain. In acute pain, during the quarter, we completed enrollment in two Phase 4 trials evaluating GERNAVIX, initiated preoperatively and as part of multimodal approaches to acute pain management.

Speaker #3: The interim analysis for one study will be shared at a medical conference later this week, and top-line results for GERNAVIX show safety and efficacy consistent with the pivotal program, accompanied by substantial reductions in opioid use following aesthetic or reconstructive procedures, with approximately 90% of participants being opioid-free, compared to less than 10% after similar procedures per the literature.

Speaker #3: In neuropathic pain, the first EPN Phase 3 study is well underway, and we have completed work that sets up the initiation of the second DPN Phase 3 study later this month.

Speaker #3: Transitioning now to the kidney portfolio. Renal medicine is experiencing a renaissance in drug development, and VERTEX seeks to be a leader in the field.

Speaker #3: With our differentiated R&D approach, grounded in causal human biology, validated targets, and biomarkers that translate; we have a broad portfolio of innovative therapies with transformative potential for patients with serious kidney diseases.

Speaker #3: Our clinical pipeline has first-in-class or best-in-class assets for four kidney diseases, three of which are already in or approaching pivotal development. VX407 for autosomal dominant polycystic kidney disease, or ADPKD, enaxaplin for apoL1-mediated kidney disease, or AMKD, POVI for IGAN, and POVI for primary membranous nephropathy.

Speaker #3: Starting with VX407 for ADPKD, where the Phase 2 proof-of-concept study was initiated earlier this quarter. Recall, there are approximately 300,000 patients with ADPKD in the US and Europe.

Speaker #3: These patients have limited treatment options and no approved therapies that treat the underlying cause of this disease. We believe that up to 10% of patients with ADPKD may be eligible for treatment with VX-407, a first-in-class small molecule protein-folding corrector.

Speaker #3: VX407 is designed to target the root cause of ADPKD by restoring PC1 protein function. This Phase 2 proof-of-concept study is a single-arm trial of 24 patients that evaluates the effect of VX407 on height-adjusted total kidney volume.

Speaker #3: The second kidney program to highlight is enaxaplin for primary AMKD, a disease that affects 150,000 patients in the US and EU. Enrollment in the interim analysis cohort of the Amplitude pivotal study has completed.

Speaker #3: The patients in this cohort are now being treated for 48 weeks after which we will conduct the interim analysis and, if positive, we will be poised to submit for potential accelerated approval in the US.

Speaker #3: Additionally, we are running the Amplified study, which is a Phase 2 proof-of-concept study of enaxaplin in patients with AMKD with moderate proteinuria or patients with AMKD and diabetes, populations not being studied in the Amplitude trial.

Speaker #3: Amplified is on track to complete enrollment by the end of this year. Now turning to Povitacicept. The lead and first indication for POVI is IGAN, a disease-impacting more than 300,000 diagnosed patients in the US and Europe and over 1 million patients globally.

Speaker #3: There are four points to highlight in this program. First, we completed enrollment of the interim analysis cohort of the Rainier Phase 3 trial earlier this year.

Speaker #3: Second, the FDA has granted POVI breakthrough therapy designation and rolling review for our BLA. Third, we have completed the studies to support the launch of POVI for at-home self-administration with a subcutaneous autoinjector.

Speaker #3: Lastly, the new news, I'm very pleased to share tonight, is that we have completed full enrollment in the Rainier Phase 3 trial. The trial enrolled approximately 600 patients in approximately 15 months, the fastest of any contemporary Phase 3 study in IGAN, and is a testament to the significant opportunity ahead for POVI.

Speaker #3: Here's the outlook when you put these four major milestones together. With the rolling review that the FDA has granted, we will begin our submission for potential accelerated approval before the end of this year.

Speaker #3: Once the interim analysis cohort completes 36 weeks of treatment, assuming the results are positive, we will complete our BLA submission for potential accelerated approval in the US in the first half of 2026.

Speaker #3: We have used a priority review voucher and thus we have certainty that POVI's BLA in the IGAN indication will receive an expedited priority review in the U.S.

Speaker #3: That is a six-month review versus a traditional ten-month review. Next, and consistent with this pipeline and product potential, we are pleased to have initiated the pivotal study for the second potential renal indication for POVI in primary membranous nephropathy.

Speaker #3: There are approximately 150,000 patients with membranous nephropathy in the US and Europe and nearly 500,000 globally. Today, there are no approved therapies that treat the underlying cause of this disease, leaving a significant patient population with high unmet need.

Speaker #3: POVI was recently granted fast-track designation by the FDA in membranous nephropathy, and our Phase 2, 3 adaptive study OLYMPUS is now underway. One final note in R&D regarding zamolazole in type 1 diabetes.

Speaker #3: While we have completed enrollment in the pivotal trial for T1D, we have temporarily postponed completion of dosing while we work through an internal manufacturing analysis.

Speaker #3: As this is an ongoing pivotal trial, it is critical to maintain study integrity and so we won't be providing any additional detail. I look forward to updating you once dosing is complete.

Speaker #3: In closing, VERTEX now has seven commercial medicines, five programs in Phase 3 development, and an exciting earlier-stage R&D pipeline. Accordingly, as we drive to achieve our R&D milestones, we're executing on the concurrent work of getting our approved medicines to more patients around the globe and preparing for additional near-term potential launches.

Speaker #3: To tell you more about our commercial efforts, I'll now turn over the call to Duncan.

Speaker #2: Thanks very much, Reshma. I will focus my comments tonight on the CF franchise. Global launches of a lift track and cast Jevy, the US launch of Genavix, and commercial planning for our potential launches in four serious kidney diseases, the first of which will be POVI in IGAN.

Speaker #2: Beginning with CF, our CF franchise delivered strong double-digit growth this quarter as we continue to grow the number of eligible patients taking our CFTR modulators.

Speaker #2: This reflects the ongoing launch of a lift track, progress with younger patients, and patients with rare mutations, enhanced survival benefits of our therapies, and expansion into new geographies such as Brazil and Turkey.

Speaker #2: Focusing on a lift track, our fifth therapy approved to treat the underlying cause of CF. We believe a lift track is the best CFTR modulator available for eligible patients given that, when compared to standard of care Trikafta, a lift track provides further improvements in CFTR function as measured by sweat chloride, is indicated for additional rare mutations, and offers the convenience of once-daily dosing.

Speaker #2: The US launch of a lift track is progressing well across all patient groups. We have seen particularly rapid uptake in those patients who are naive to CFTR modulators and the vast majority of previously untreated patients in the US have now been initiated on a lift track.

Speaker #2: We also see continued uptake by those patients who have previously discontinued one of our other CFTR modulators. Lastly, the pace of transition patients primarily those switching from Trikafta remains steady and represents the majority of patients on a lift track in the quarter.

Speaker #2: Outside the U.S., the early launch of a lift track is off to a strong start in multiple European countries where patients have reimbursed access.

Speaker #2: England, Ireland, Germany, and Denmark. The feedback has been very positive, both in terms of the clinical profile and once-daily dosing. As Reshma mentioned, there are nearly 10 times as many newly eligible patients in Europe with rare mutations for Trikafta and a lift track than in the US, and no additional liver monitoring requirements.

Speaker #2: Overall, we are pleased with the response to a lift track and continue to expect that the majority of patients around the globe will transition to a lift track over time given its multiple benefits.

Speaker #2: Moving to cast Jevy, our transformative one-time treatment for patients with severe sickle cell disease and beta thalassemia. The momentum continues to build as we enter the last few months of 2025.

Speaker #2: As a result, we have a clear line of sight over 100 million dollars in cast Jevy revenue this year and significant growth in 2026.

Speaker #2: Importantly, we have seen continued progress in securing access to cast Jevy around the world, with the notable recent addition of reimbursement in Italy for TDT and SCD.

Speaker #2: Italy has the second largest population in the world of TDT patients at approximately 5,000 patients, about half of whom are eligible for cast Jevy.

Speaker #2: As further evidence of cast Jevy building momentum across all three regions, the US, Europe, and the Middle East, I'm pleased to report that since launch and through the end of quarter three 2025, nearly 300 patients have been referred by their physicians to an ATC to initiate the treatment process.

Speaker #2: More than 160 patients now have had their first cell collection. This includes 110 in the first nine months of 2025, double our full year 2024 total.

Speaker #2: A total of 39 patients have received their infusions of cast Jevy edited cells, including 10 patients in the third quarter of 2025. We see continued growth in ATCs onboarding and initiating patients in the U.S., Europe, and the Middle East as the treatment teams become more familiar with the process.

Speaker #2: Through the end of September 25 ATCs had initiated more than five patients and at least one ATC in each of the three regions had initiated 20 or more patients.

Speaker #2: Given the very well understood duration of the treatment journey and the fact that we now have significant numbers of patients at every stage in the process, cast Jevy has a strong outlook and we're excited to serve the growing numbers of patients through the end of this year into 2026 and beyond.

Speaker #2: Now shifting to the launch of Genavix in moderate to severe acute pain. We continue to see a very positive reaction to this novel non-opioid option for the treatment of moderate to severe acute pain.

Speaker #2: As a reminder, our goals in 2025 were firstly secure broad payer coverage. Secondly, ensure hospital and health system access through PNT reviews and formulary adoption.

Speaker #2: And thirdly, drive broad usage of Genavix across a range of physician and pain types with a seamless experience for physicians and patients alike. We're executing well on all fronts and I'll now provide some details.

Speaker #2: We continue to make good progress with payers. As of mid-October, across commercial and government payers, over 170 million lives have reimbursed access to Genavix, up from the 150 million we discussed on our Q2 call.

Speaker #2: With commercial payers, our negotiations continue to progress favorably. We have formal coverage under two of the three large national PBMs and are working to add the third.

Speaker #2: In Medicare, we continue to engage with plans to secure coverage. And for Medicaid patients, through mid-October, we now have a total of 19 states, up from 16 last quarter, that are providing access to Genavix without prior authorization or step edit requirements.

Speaker #2: We continue to expect that coverage across commercial, Medicare, and Medicaid payers will expand through the balance of 2025 and into 2026. Note that even after national payers grant formal coverage for Genavix, it can take time to ensure that all lives are covered in their downstream plans.

Speaker #2: Therefore, we plan to extend our patient support program, or PSP, into 2026 to ensure that if a physician makes the decision to prescribe Genavix for their patient with acute pain, the patient will receive the medicine.

Speaker #2: Recall, the PSP only kicks in for those patients without coverage or with highly restricted coverage so for patients plan reimburses Genavix, the PSP program is not triggered.

Speaker #2: Secondly, we're making excellent progress with PNT committees at the approximately 150 healthcare systems and 2,000 hospitals we're targeting. More than 750 hospitals and approximately 90 of the 150 targeted large healthcare systems have now added Genavix to their formularies, protocols, or order sets.

Speaker #2: Thirdly, we continue to see broad adoption of Genavix by a wide range of physicians, including orthopedic surgeons, plastic surgeons, anesthesiologists, pain specialists, and dentists.

Speaker #2: They're using Genavix in a wide range of pain settings, including surgical and non-surgical procedures, such as joint replacement and repair, shoulder surgeries, fractures, and sprains, and dental procedures.

Speaker #2: In hospital systems and clinics that have adopted Genavix, we have received impressive feedback from physicians in terms of very significantly reduced or eliminated opioid usage, consistent with the phase four study results Reshma mentioned earlier.

Speaker #2: Reports from patients also continue to be very positive in terms of how well Genavix managed their pain in addition to being well tolerated. We also continue to see that Genavix is promotionally responsive to our field representative calls as well as our digital engagement with physicians.

Speaker #2: There is a clear correlation between frequency of calls and depth of prescription writing by physicians. For these reasons, and as we discussed last quarter, we're planning to add 150 additional representatives in the first quarter of 2026, which will enable us to increase our frequency of calls with existing prescribers and expand our coverage to additional physicians.

Speaker #2: And to raise awareness of Genavix among consumers, we have a wide range of communication initiatives ongoing, including a partnership with basketball superstar Jason Tatum as he shares his Genavix treatment journey experience post his Achilles injury during the playoffs last season.

Speaker #2: Finally, as evidence of the growing reception in the marketplace, there have now been more than 300,000 prescriptions filled for Genavix across the retail and hospital settings as of mid-October.

Speaker #2: We continue to have high confidence that there is a significant unmet need for an effective non-opioid option to treat moderate to severe acute pain, and we're in the early days of creating another multi-billion dollar franchise for Vertex.

Speaker #2: I'll close with some comments on our commercial planning for our potential launches in renal medicine, where we have begun the build-out of our commercialization team.

Speaker #2: We expect that our renal franchise will become a significant growth driver and value generator for Vertex over the next several years. I'll focus my comments this evening on our first step in that direction, POVI in Eigan.

Speaker #2: We believe that POVI offers a unique combination of attributes with a compelling clinical and patient profile. Firstly, POVI is a fusion protein specifically engineered for better tissue penetration and to deliver optimized targeted dual inhibition of the BAF and April cytokines.

Speaker #2: In the RUBI 3 clinical data we've seen to date, POVI delivers substantial reductions in GDIGA1, hematuria, and proteinuria. Secondly, among the April-only or dual BAF April inhibitors, POVI has the most convenient dosing and administration for patients.

Speaker #2: Every four weeks, at-home administration via a subcutaneous auto-injector and the lowest dosage volume of less than 0.5 milliliters. And thirdly, POVI is the only dual BAF April inhibitor in pivotal trials for multiple serious kidney diseases, Eigan and PMN.

Speaker #2: We believe POVI has a superior mechanism of action, a superior clinical profile, and will deliver a superior patient experience, in short, we believe POVI holds best-in-class potential.

Speaker #2: We're excited to build out our renal franchise and prepare for commercialization in our fifth disease area with POVI as a potential best-in-class treatment for Eigan.

Speaker #2: I'll now turn the call over to Charlie to review the financials. Thanks, Duncan. Vertex's Q3 2025 double-digit revenue growth demonstrates our consistent strong performance and attractive growth profile.

Speaker #2: Third quarter 2025 total revenue increased 11% year-over-year to $3.08 billion. US revenue growth of 15% year-over-year was driven in CF by ongoing patient demand and favorable net pricing versus prior year, as well as contributions from a LIFTREC, CASGEVI, and GERNAVIX.

Speaker #2: Revenue outside the US grew 4% year-on-year, including mid-single digit CF growth and a contribution from CASGEVI. Included in Q3 25 total global revenue and the regional growth rates was $17 million of CASGEVI revenue and $20 million from GERNAVIX.

Speaker #2: Third quarter 2025 combined non-GAAP R&D acquired IPR&D and SG&A expenses were $1.28 billion, compared to $1.08 billion in the third quarter of 2024. Non-GAAP operating expenses increased 19% year-on-year, driven primarily by the continued advancement of our broad later-stage pipeline, including the acceleration of POVI development programs, as well as the build-out of commercial capabilities in pain.

Speaker #2: Acquired IPR&D expenses were $55 million compared to $15 million in the third quarter of 2024. Third quarter 2025 non-GAAP operating income was $1.38 billion, compared to $1.31 billion in the third quarter of 2024.

Speaker #2: Third quarter 2025 non-GAAP effective tax rate was 17.6%, including benefits from R&D tax credits as a result of last year's Alpine acquisition. Third quarter 2025 non-GAAP net income was $1.24 billion, compared to $1.14 billion in Q3 of '24.

Speaker #2: Third quarter 2025 non-GAAP earnings per share were $4.80, an increase of 10% compared to $4.38 in the third quarter of 2024. We ended the quarter with $12 billion in cash and investments after deploying approximately $1.1 billion to repurchase more than 2.7 million shares in the third quarter.

Speaker #2: Year to date, we have spent over $1.9 billion to repurchase approximately $4.5 million shares. Our priorities for cash deployment remain unchanged. Innovation and growth fueled by investments, both internal and external, with a second priority of share repurchases.

Speaker #2: Now, switching to guidance. With only one quarter remaining in 2025, we are updating our financial guidance for revenue, operating expenses, and taxes. We now expect 2025 total revenue to be in a range of $11.9 billion to $12 billion versus prior guidance of $11.85 billion to $12 billion.

Speaker #2: Representing growth of approximately 8 to 9% for the full year at current exchange rates. This outlook reflects our expectation for continued growth from our portfolio of CF medicines, including the ongoing launch of a LIFTREC in the US and recent launches in Europe.

Speaker #2: As Duncan mentioned, full-year revenue guidance also includes over $100 million of CASGEVI revenue, as we treat more patients in geographies where we have secured regulatory approval and reimbursement.

Speaker #2: In addition, guidance reflects further contribution from GERNAVIX in the fourth quarter due to growing prescription volumes. We are also refining guidance for combined non-GAAP R&D acquired IPR&D and SG&A expenses and now expect operating expenses of approximately $5 to $5.1 billion versus prior guidance of $4.9 to $5 billion for the full year.

Speaker #2: This is primarily due to the acceleration in POVI development programs across multiple indications and increased investment in commercial and marketing activities to support the launch of GERNAVIX.

Speaker #2: There is no change to our estimate of approximately $100 million in projected IPR&D charges for the full year, including the recently announced collaboration with INLASA.

Speaker #2: We continue to expect an immaterial cost impact from tariffs in 2025 based on what we know today due to our significant US presence and our geographically diverse supply chain.

Speaker #2: Of course, given the dynamic nature of the tariff situation, including the potential for sector-specific tariffs, this outlook is subject to change. Finally, we are lowering our expected full-year 2025 non-GAAP effective tax rate guidance from a range of 20.5% to 21.5% to a revised range of 17% to 18% to incorporate several one-time tax benefits.

Speaker #2: These benefits include those recognized in Q3 from Alpine-related R&D tax credits, as well as anticipated recognition in Q4 '25 of previously deferred tax benefits.

Speaker #2: In closing, Vertex yet again delivered strong results in Q3 '25, growing and diversifying our revenue with the launch of two new products in the U.S.: LIFTREC and GERNAVIX, the launch of LIFTREC in Europe, and the continued global launch of CASGEVI.

Speaker #2: We also made significant pipeline progress across the portfolio in mid and late-stage clinical development, including POVI's pipeline in a product potential and continued advancement.

Speaker #2: These and other anticipated milestones of continued progress in multiple disease areas are detailed on slide 17. We look forward to updating you on our progress on future calls.

Speaker #2: I'll now ask Susie to begin the Q&A.

Speaker #1: Thanks, Charlie. And apologies. We understand there were issues with the webcast, and for that, we're sorry. We're working with our vendor course call. We'll also look to get the transcript out as soon as possible.

Speaker #1: Chuck, can you please give the Q&A instructions?

Speaker #3: Yes, ma'am. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone.

Speaker #3: And if you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. And at this time, we'll pause momentarily to assemble our roster.

Speaker #3: And the first question will come from Jeff Meacham with Citibank. Please go ahead.

Speaker #4: Hey, guys. Afternoon. Thanks for the question. Just have two quick ones. On a LIFTREC, just wanted to get maybe a bit of a status update.

Speaker #4: Do you think you're hitting a tipping point with regard to the kind of patients switching, or those that are maybe kind of new starts? And just curious about the monitoring requirement, whether that's sort of eased a little bit.

Speaker #4: And then the second thing is, as you guys look forward, Reshma, I know you're a nephrologist by training. So as you get closer to the POVI data set, maybe just help us with kind of how you're thinking about the differentiation here versus the many BAF April type of assets here.

Speaker #4: I know, obviously, it's data dependent. I want to get your high-level comments. Thank you.

Speaker #1: You bet. Jeff, let me ask Duncan to take the question on Allie, and I'll come back for POVI.

Speaker #5: Good afternoon, Jeff. So, yes, as far as a LIFTREC is concerned, I would say that the vast majority of the newly eligible patients in the U.S. have now started on a LIFTREC.

Speaker #5: And we're seeing the discontinued and transitioned patients transition nicely over to a LIFTREC as physicians are navigating the monitoring requirements over the first few months.

Speaker #5: The pace of transitions remains steady, and we're very happy with the progress. Outside the US, we're also seeing strong uptake in those countries with access.

Speaker #5: And I would add that in the 10 months since the launch of a LIFTREC, it's generated close to half a billion dollars of sales in revenue.

Speaker #5: So overall, we're pretty happy with the pace of progress on a LIFTREC.

Speaker #1: Jeff, on POVI tax-accepting, let me focus my comments on Allie again. It is really very exciting. The data that we're going to share at the ASN, which is this coming week, is more patients' worth of data and longer follow-up.

Speaker #1: And you should look for the endpoints of proteinuria, hematuria, you should also look for the pharmacodynamic marker in Allie again, which is called GDIGA1.

Speaker #1: I am very, very excited about these results. To me, if you think about Allie again and what it means, it is a chronic disease that, unfortunately, results in death, dialysis, or transplantation.

Speaker #1: That's what ends up happening to our patients. And so what we're really trying to do here is get those autoantibodies under control in order to mitigate that endpoint.

Speaker #1: If you look at the disease, it's a disease of elevated April levels and elevated BAF levels. It's not the case that just one of those two cytokines is elevated.

Speaker #1: So it makes all the sense in the world to me to inhibit both, which is what POVI does. The next thing to look at is the preclinical data.

Speaker #1: And you've heard me say before, the reason we were so excited about Alpine and POVI is because it was a specifically engineered for higher tissue distribution.

Speaker #1: Potency and binding affinity. And then you translate that to the early data that we see. In the clinic through RUBI 3, and it looks really good.

Speaker #1: Last thing I'll say is for patients who have this as a chronic disease, the important thing is that they have a medicine, a biologic, that they can take over time that is best for them.

Speaker #1: And from all of the data not only in market research for Allie again patients, but you look at biologics in the marketplace, it's about the dosing small volume.

Speaker #1: It's about having an autoinjector and monthly dosing, which are key. And that's what we have with POVI. Last thing to say, I do think nephrologists are also going to be interested in the fact that we've already started our phase two, three trial in membranous.

Speaker #1: So all in all, it's pretty neat.

Speaker #3: Great. Thank you.

Speaker #1: You bet.

Speaker #5: The next question will come from Salveen Richter with Goldman Sachs. Please go ahead.

Speaker #6: Good afternoon. Thanks for taking my question. Just to follow up on Jeff's here with the POVI data, with all those markers that we're going to look at in the longer-term phase two data, maybe put that in context for us about how to think about the read-through to EGFR benefit and just kind of overall positioning as we look to these other two drugs that are out there or more.

Speaker #6: And then secondly, on the pain franchise, you've talked for a bit about getting that third PBM on board prior to really opening up distribution.

Speaker #6: Could you just help us understand what's being finalized on that end? Thank you.

You didn't ask I would just, uh, reference the prescription growth, you know? We saw 10,000 prescriptions in quarter 1. Uh, 90,000 prescriptions in quarter 2, 170,000 prescriptions in quarter 3, and of course uh several thousand uh in October. So we're very happy with the acceleration we're seeing in prescriptions while we finalize access.

The next question will come from Jessica fee with JP Morgan. Please go ahead.

Hey guys, good afternoon. Thanks for taking my question. I was wondering if you could just touch on what your current priorities are as it relates to capital allocation and, specifically, on the business development front. Is there a phase of development you feel is the sweet spot for assets that Vertex brings in? Thank you.

Yeah, just uh, no change in our priorities for Capital allocation, we've said for some time, now our top priorities to reinvest in the business both internally and externally to drive Innovation and growth that continues to be true. Um, we are investing in our pipeline right now in commercialization, we are making Capital investments in support of the business as well. And that remains the top priority. Um, a secondary priority for us is a share BuyBacks. We were very active in the third quarter, taking advantage of, uh, the volatility in the stock price after the last earnings call. So we were out there

Of programs that are either preclinical or in the clinic, we were certainly very happy with the Alpine acquisition last year. If we could find something like that again, we would certainly be interested. But we are open to all types of deals that move our strategy forward in our different disease areas.

Thank you.

The next question will come from Evan segerman with BMO Capital. Please go ahead.

Hi guys, thank you so much for taking my question. I want to touch on the, um, competitive profile Toby, we talked about have having an auto injector, and, you know, q4e dosing. Can you put the contact of how important this is? Um, maybe in relationship to other competitive products that could be on the market. And why you think this could give you a competitive advantage

Yeah. Evan, um

That, with Duncan said, he can give you a commercial perspective. Um,

The auto injector. Um, once monthly dosing in small volume are really, really important. Of course, this means, um, we've already thought through safety efficacy benefits with, um, and a, a really good-looking clinical profile, but it's specially in diseases where you're using a biologic. This Administration, um, set of features just cannot be underestimated.

Now, I'll turn it over to Duncan to tell you about um, some examples, uh, in the field and maybe some market research as well. Duncan

Yeah, thank you for the question. So, um, I mean I would step back a little bit and just make the point that, um, for a variety of reasons and attributes we believe that POV offers best-in-class potential in terms of its, uh, mechanism of action. Uh, the way it's been specifically engineered for the disease, uh, the compelling clinical profile. And then as you allude to, uh, the the patient profile, um, the key here is that it's dosed every 4 weeks at a very low volume. It can be administered at home, and those attributes are incredibly important, especially in biologics. Uh, they've been shown to significantly, reduce patient burden, um, improve adherence, uh and increase treatment satisfaction in other uh, biologic previously launched. So we do think although it sounds unimportant actually. This is a very important differentiator for POV, uh, alongside the mechanism of action and the excellent clinical data that we're seeing. So we're, we're super excited to be bringing it.

To Market. And for all of those reasons we do think it has best-in-class potential.

The next question will come from tazeen amas with Bank of America. Please go ahead.

Hi guys. Good evening. Thanks for taking my question. Um, can you just provide some clarity on what the FDA has seen thus far? That's um, let them give you the confidence to start the filing early and get this breakthrough designation.

Proposing.

Yeah, sure thing. Um, so he we've had the opportunity to complete, um, what's called a prela meeting. Um, in other words, we've had the opportunity to sit with the agency review, all of the day-to-day, uh, talks through what the filing submissions was called the CTV, uh, will look like it. So they have access to all of our data, um, and our plans, for how we expect to be filing after we went through that meeting. Um, that's uh, when we, um, got the Breakthrough designation. It's also, uh, when we uh, received, um, their, uh, endorsement for Rolling submission, I would say that, um, it's the reason they have granted us breaks from enrolling, is probably the same as for most medicines that get it. They see unmet need. They see a medicine that, um, is attractive and can treat.

The disease at hand and that they have enthusiasm to receive the filing so that they can plan their workload.

The next question will come from Terence Flynn with Morgan Stanley. Please go ahead.

Great. Uh, thanks for taking the question. I was just wondering Russian if there's any update on the uh no pain act and um what you guys are doing on that front and then I know you mentioned, there's some phase 4 data for janavs. That's coming up here. Um, are we going to see anything on time to just charge? Um, setting. I know that's something that some Physicians have asked about in the past. Thanks so much.

Finalist. Um, it was supposed to be out on October 31st. So last week Friday. Um, and we understand that it's been postponed, um, because of the government shutdown, we continue to Advocate vigorously for the inclusion of Dramatics, and as we've talked before. While the dollar number may be small for, um, Hospital outpatient, or Sergey center for Medicare patients. We think that the principal is really important. The no pain Act was um, literally designed for a medicine like journaling. So, uh, we continue to have our conversations, but the list, um, the finalization of that list and the release of that list has been delayed.

I don't have an updated timeline for when it will be out.

Um on the space for data. We've now completed um enrollment in 2 phase 4 studies, 1 is multimodal, um therapy and use prior to and post-op in um uh aesthetic and reconstructive surgeries. And another 1 is in orthopedic and general surgeries the data that you're going to see later this week is in the aesthetic and um reconstructive surgery area and the the thrust of the data uh is about uh opioid reduction compared to what's seen in the literature. We have a whole host of additional studies coming.

Um, that looks at a variety of other endpoints um including uh discharge but those data are not ready just yet.

The next question, will come from David ringer with Larry Partners please go ahead.

Thanks very much. Uh, I'm Edward calling on behalf of David Risinger. So 2 questions please um for genetics. How many of the 170 million lives have unrestricted access and how many commercial lives are covered by the major pbms?

And, um, the second question on the Next Generation CF candidate, BX 828, can you provide more details on the PPP, uh, news ahead and also the timing for data disclosure? Thank you.

Yep, let me check.

The VX 828. Um question first and I'll to turn it over to Duncan to to talk to you about your next.

Um, on VX a28. Um, the important thing to know is it is the most efficacious medicine in vitro that we have ever studied. And you know that our individual systems in CX have translated time and again, not only qualitatively, but quantitatively to what we see in the clinic. So 828 is, is the most, um, efficacious, that we've seen so far.

You should expect to see data next year, we're uh in the patient cohort now.

Um, I'll give you more specific timelines, um, in the coming months, but you should see data next year and in terms of what we're looking for look up it is getting hard to um to do better than what we have today. The this the data that I described our tricaster 1 to 2 year olds is truly a remarkable and unprecedented but if it is possible to do better and by that, I mean bring more patients across all age, groups to lower levels of sweat chloride, IE, higher levels of cftr protein function. That's what we are committed to do and that's what we're looking for with the x82. Duncan uh a couple of words on genomics and um the 170 million lives in um tell us about the kind of coverage. Yeah, so thank you for the question. So to answer it of the 170 million lives. Um, um, uh, $113.

Uh, million are unrestricted. So as I've communicated before all of the contracts that we have, uh, done all of the agreements we have in place uh are for no prior authorization, uh, no step edit. Uh, so we're very pleased indeed with that progress. And as I alluded to um, in 1 of the earlier questions we continue to make progress with

The third PBM where we're in active conversations, uh, and indeed with the Medicare plans as well.

The next question will come from. Fiona do with TD Cowen, please go ahead.

Good afternoon. Thanks for taking our questions to commercial questions for us first on JX based on prescription Trends. In this prescription numbers that you you said it seems like rosenet continues to be quite High.

Can you give us a sense of of work currently is and and where it could be in 2026?

Um, you said a couple of times steady transition from Tricafe to a lift track?

When do you think you'd be in a position to give formal guidance? Say 3 years from now some percentage.

Percentage of patients will be transitioned to a lift trick. Thank you.

Sure thing. So, let me take the second question first, and I'll turn it over to Charlie for Grosse tete. Um, as you heard Duncan say, um, in the coming couple of years, we expect the majority of patients around the globe to who are on triactive to transition to a live Trek because we believe, um, lift Trek is the best. Um, available cftr modulator Charlie. A couple of words on growth event and journal addicts. Yeah. So so the, the 3 drivers of course, of gross to net are a payer discounts wholesaler discounts and the impact of the patient support program with that last 1 being most significant in uh, in 2025, uh, while we are working to expand payer coverage and finish some of the Contracting work, that Duncan talked about uh, the the patient Support Program continues to be very active and that's resulting in elevated. Gross to net for the time being, we're not yet ready to give guidance for 2026 on that, uh, until we've landed on uh, the the mix and the Book of business with pay.

S, I think it would be early uh to say anything about that for for next year.

Okay, thanks for taking our questions.

You bet.

Your next question will come from Paul Matias with CFO, please go ahead.

Hi there. Thanks so much for taking our questions. This is Julian for Paul. Just wondering if there's you know, any updated thinking around um the potential development of susette, Reginae and chronic pain. Um you know following the the update that you provided last quarter, you know, just wondering if there's any other indications you're pursuing or if there's, you know, any other way in which you're considering um potentially even potentially even you know acquiring an asset to play in the space longer term as uh there's been, you know, greater interest from competitors. Thank you.

Yeah. Um,

The um, no new updates for you. Um, so Spectra Gene in the peripheral neuropathic pain area. We are hyper focused on getting our uh DPN study number 2 up and running to secure the DPN indication which for which there is a clear pathway concrete. Next steps for us to take and uh an ability to serve 2 million. Um patients

With regard to our ideas for how to expand to the broader PNP market, there are a couple of things that we're working through. We believe we are identifying the most efficient way to get there. We're also considering timelines for our NAV 1.8 inhibitors, ID dramatics, and our NAV 17s, as well as the possibility of combination therapies. More to come on that. PNP remains very interesting to us, but the focus now is on securing the DPN indication and getting the second VPN study, the diabetic peripheral neuropathy study, up and running. I do think that we'll be completing both those studies by the end of next year.

Okay, thank you.

The next question will come from Gina Wayne with barklay please. Go ahead.

Thank you for taking my questions. So, maybe I would just have a 1, quick question, regarding the poly, uh, data later, uh, this week. I know you cannot disclose anything, uh, regarding, you know, the actual data but just wondering giving if we look at Vera data, uh they already setting. EGF father, pretty high basically flat or the slope is relatively. Um, but you know the I think the slope is a minus 0.1. So here, do you think uh you know with your drug profile? Do you think it could actually improve the egfr of the longer treatment?

Yeah, she she got, I, I do understand your question. Um, I I think um, you'll be pleased, uh, with the with the data that we show at ANS ASN later this week, I certainly am, I would say, um, the same thing that I said to saline reductions in Predator in a number of homogeneous renal diseases, with proteinuria have translated to stabilization of GFR. And so, I think that that um, will happen

Was a partner.

Um, completely eliminate, uh, if not decrease, he matariya gets a low levels of these apparent gaw, uh, antibodies. I think that's where we're going to see, practice move. And I think you're already seeing that with K ego, guidelines, for example, um, I will, um, I won't, um, uh, jump ahead of the data coming at ASN, but you will see, uh, egfr data from the co test set again program.

Thank you.

The next question will come from mohead. Bansal with Wells, Fargo, please go ahead.

Good thank you very much for taking my question. Uh and I would also emphasize or ask question around the BD here would love to understand your thought process here. Given that I mean you said that uh if we find something like uh uh POV we would go for it. I think the only challenge is that vertex is not a small company anymore. So maybe is there a? Is there a chance that you would look at bigger deals in that 5 to 10 billion range as well? Or given your cash position? Uh, you think you would probably be nimble in small when it comes to BD at this point. Thank you.

Um, this is Reshma. Um,

Sorry moment this moment, I'm sorry moment, I'm sorry. Um I I think Charlie summarized it really well. Our BD strategy is um very much in lock step with our internal Innovation strategy. It's all about the sandbox diseases and our approach to R&D High unmet need.

The uh biomarkers that translate from bench to bedside, as well as uh targets that are validated. Be it a genetic or uh pharmacology efficient clinical and clinical development and Regulatory Pathways and Specialty markets um that that is the uh those are the guiding principles that have led us to where we are and you can bet that we're going to keep going with the same. It's not about the the size. It's all about fit with R&D strategy.

Got it. Thank you.

The next question will come from Moz Mentor with William Blair, please go ahead.

Hi, this is Jake on for Miles. Thanks for taking our question. I have a couple of you. Um, first, I wanted to ask you about any updates to your DM1 program—when or how much data we can expect?

Um, and then sort of how you're evaluating that program given the recent acquisition of avidity and then on cvy, can you remind us as patients are going through the, the process? Um, and then enrolling into this long-term, follow-up study. Um, your policy for disclosing Adverse Events whether those be both, uh, from the preconditioning regimen or from the editing, uh, regimen or both. Thanks,

Yeah. Uh, let's maybe do catch Jimmy first, uh, for all of the clinical trial patient data. Whether it's in the, uh, primary. Let's call it. The primary sickle cell disease and betaal of studies, climb 1 and climb 2. Or if it's in the long term follow-up studies, they get reported through the clinical trial system.

Um, for commercially treated patients. They get reported as physicians may, uh, report through to either the company or to the FDA, in the normal manner.

Dm1 is a is an exciting program for us. You might recall that the way we set up this study in order to be, uh, most efficient and fastest to pivotal development. If the data are supportive, is we did a sad math directly in patients. We've completed the SAT portion of dm1 and we're in the Mad portion now. I expect that we'll be able to complete the study and have results next year. And uh, what that means is because we're in patients, it will be safety and efficacy.

Thank you.

The last question.

The last question of the day will come from William. Pickering with Bernstein, please go ahead.

Is how you define the PMN addressable market? I think that Biogen has estimated only 36,000 patients in the U.S., which seems a bit more conservative than your combined U.S. and EU number would imply. Thank you.

Yeah. So um with regard to members um there are some similarities between IGA nephropathy and membranous. The the most compelling is that they are both B cell mediated diseases where there's Auto antibody formation and that, um, the auto antibodies, um, and uh, depositing in the kidney, which leads to the kidney dysfunction, the way that, um, membranes. And I again, um, are different is clearly in prevalence. Um, there's about

Um, 700,000 people, with Ian, for example, in China, it's a really significant disease in Asia. I think the estimates are something like 300,000 in the Western world. While membranes is more like 150,000 in the Western world.

The competitive landscape is also different; there is much more competitive intensity in IGA nephropathy, likely because it’s a larger patient population. To the best of my knowledge, we are the only April bath, for example, in pivotal development for membranes. I do think.

Exactly, for the reason that these are both B cell mediated diseases, I think a a drug like POV has best-in-class potential in membranous. Um, and in the April back class. Um, we're in the lead because we are already initiated in the phase 2 3. I hope that helps

Thank you.

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Thanks everyone for joining, apologies again, for the technical issues, we'll have to have the replay up as soon as possible and with that check, if you could give that information, thank you.

Yes, ma'am.

The conference is now concluded. Thank you for attending today's presentation, a replay of today's event will be available shortly after the call concludes by dialing, 1-877- 3447529 or 1 1412 31700000888 using replay access.

Code, 101-965-5390 disconnect.