Vertex sales jump but Orkambi misses estimates

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) reported 1Q16 revenues of $398.1 million, up from $138.5 million in 1Q15 but missing analysts' estimates of $439.4 million. The shortfall was attributable to cystic fibrosis drug Orkambi ivacaftor/lumacaftor, which posted 1Q16 sales of $223.1 million. The drug was launched last July and the Street was expecting 1Q16 sales of $259 million.

On a conference call with investors, Chief Commercial Officer Stuart Arbuckle said 15% of Orkambi patients discontinued Orkambi within three months of starting treatment, mostly because of respiratory events, which adversely affected 1Q16 revenue. Vertex expects the proportion of patients who start and remain on Orkambi will be 70-80%. ...