Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) Q1 2023 Earnings Call Transcript

Stuart Arbuckle: Yes. Hey, Geoff. So on vanzacaftor, just to remind everybody on the call, our goal in cystic fibrosis is to get as many people as possible to carrier levels of chloride transport as we can. Carryovers of sweat chloride, pardon me, as we can because we believe if we can do that, we will essentially be able to prevent CF developing in people as we know it today. As you know, from our in-vitro assays, but also from our clinical data with the vanzacaftor triple combination, we believe we can get to even higher levels than we’ve even been able to establish with TRIKAFTA which, as you know, so it’s a very, very high bar. And so the study that we have ongoing, both in 12 plus but also is our 6 to 11 is aimed to do just that, to compare TRIKAFTA with vanzacaftor.

And obviously, we were looking forward to seeing the data when those studies read out. As you identified, I think there’s really going to be sort of two treatment opportunities for the vanzacaftor triple combination. If the efficacy is superior to what we see with TRIKAFTA, I think it’s going to be a really exciting new treatment option, either for those people who are currently being treated with one of our existing CFTR modulators or for patients who have discontinued one of our CFTR modulators. And I said in my prepared remarks, globally, there are about 6,000 of those patients now. Now your question is why might they respond to vanzacaftor if they haven’t responded to our other medicines. Actually, the major reason for discontinuation is not lack of efficacy.

Our products are amazingly efficacious in just about every patient. It tends to be for things like adverse events. And so I do think it’s going to be an attractive treatment option for people to consider who may have discontinued one of our previous CFTR modulators. So obviously, the data will be very influential to all of this. We’re looking forward to seeing that and also the studies are fully enrolled and ongoing, and so we’re looking forward to seeing that data. But I do think vanza has the potential to be an even better treatment option for many patients even in TRIKAFTA.

Charlie Wagner: And then, Geoff, on capital allocation, no change at all in our strategy or priorities. Our priority continues to be investment in innovation, both internally and externally. You saw that we were active with BD in the first quarter. While it may be true that if you look back over the last 18 months or so, we’ve done a number of BD transactions in cell and gene therapy, I don’t think you have to project forward that that’s the only place we’re focused. As you know, we’ve got a sandbox of disease areas, and we are modality agnostic and we’ll do the deals that make sense for our program areas and fit our strategy. Lastly, I guess I would be remiss to point out, we do have an ongoing share buyback program as well. We’ve been at that for about five years or so. And that program continues to be a part of our capital allocation strategy.

Geoff Meacham: Great. Thank you, guys.

Operator: The next question will come from Phil Nadeau with Cowen and Company. Please go ahead.

Phil Nadeau: Hi, good afternoon, and thanks for taking our questions. A few on VX-548 in acute pain. Can you talk a bit more about your target product profile? What level of energy do you want to achieve with how many side effects? Then maybe as a follow-on to that, could you discuss the target patient population, who would be the ideal patient for non-opioid option? And how many procedures per year, approximately does that patient group have? Thank you.