Vertex Pharmaceuticals Plunges 10% on Earnings Miss

Vertex Pharmaceuticals' stock price dropped 2.59% in pre-market trading on May 12, 2025, reflecting investor concerns over recent financial performance and market dynamics.

Vertex Pharmaceuticals reported its first-quarter earnings for the fiscal year 2025, revealing a 2.96% increase in revenue to $27.70 billion compared to the same period last year. However, the company's net profit declined by 41.22% to $6.46 billion, primarily due to a significant revenue drop in Russia. This decline was attributed to the impact of an illegal generic drug for cystic fibrosis (CF) being dispensed in the country, which weighed heavily on international sales.

The company's stock has been under pressure due to these disappointing results, with shares dropping by 10% on Tuesday following the earnings report. The decline in sales of its new drugs, Casgevy, Alyftrek, and others, has also contributed to the negative sentiment surrounding the stock. Analysts have noted that the 12-month price target for Vertex Pharmaceuticals is less than 20% higher than the current share price, indicating a cautious outlook for the company's future performance.