$VRTX Vertex Pharmaceuticals Incorporated reported adjusted earnings per share of $4.01 in third-quarter 2022, up 14% year over year. The adjusted earnings also beat the Zacks Consensus Estimate of $3.69. Strong cystic fibrosis (“CF”) product revenues during the quarter, which was partially offset by higher research and development expenses, boosted earnings. Revenues of $2.33 billion, which surpassed the Zacks Consensus Estimate of $2.23 billion, comprised fully of CF product revenues. Total product revenues rose 18% year over year, primarily driven by higher international sales of Trikafta. CF product sales rose 5% year over year in the United States, while sales outside the United States surged 46%. Trikafta generated sales worth up 29.2% year over year, driven by strong uptakes in international markets and additional patients starting treatment with Trikafta, most notably pediatric patients (6-11 years of age) in the United States. Symdeko/Symkevi sales down 53.1% year over year. Kalydeco sales down 14.2% year over year. Orkambi sales down 21.1% from the prior-year quarter’s levels. They were hurt by patients switching to Trikafta. Adjusted operating expense was $758 million in the quarter, up 29% from the prior-year quarter’s levels. This rise in the expense was made by the company to support the clinical development of its pipeline candidates as well as increased costs incurred by management to support the company’s product launches. Adjusted research and development (R&D) expenses rose 36.2% from the year-ago quarter’s levels to $549 million due to the expanding mid- and late-stage pipeline. Adjusted selling, general and administrative (SG&A) expenses increased 13.9% to $180 million in the reported quarter due to expenses for CF launches and pre-commercial activities for exa-cel. During the third quarter, Vertex recorded acquired IPR&D costs of $29 million compared with $ 27 million in the year-ago quarter. The company raised its previously-issued product sales guidance for 2022 from $8.6-$8.8 billion to $8.8-$8.9 billion, backed by robust sales of Kaftrio/Trikafta in international markets and a steady performance in the United States. The updated guidance represents product revenue growth of approximately 17% at the midpoint. Shares rose 4.8% in after-market trading on Oct 27, most likely on this increased sales guidance. This year so far, shares of Vertex have surged 31.1% against the industry’s 23.3% decline. Combined adjusted R&D, Acquired IPR&D and SG&A expense guidance for 2022 was maintained in the range of $3.0-$3.1 billion. The adjusted tax rate is expected in the range of 21-22%. Though Vertex is a market leader in the CF space, the company is rapidly advancing its pipeline consisting of rapidly advancing mid- and late-stage clinical non-CF pipelines across six disease areas. Vertex stated that programs in five disease areas are entering or progressing through late-stage clinical development. Vertex is co-developing a gene-editing treatment, exa-cel (formerly CTX001), in partnership with CRISPR Therapeutics in two devastating diseases — in transfusion-dependent beta thalassemia (TDT) and sickle cell disease (SCD). CRISPR and Vertex are evaluating exa-cel in two ongoing phase I/II/III studies in SCD and TDT indications. Vertex and CRISPR are also preparing to start a rolling review submission with the FDA for exa-cel in the indications by November 2022. Vertex and CRISPR have already completed discussions on exa-cel for both SCD and TDT indications with the regulatory authorities in Europe. The companies intend to submit the regulatory filings by this year’s end. Vertex expects exa-cel to be its next commercial launch.