VRTX · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

VERTEX PHARMACEUTICALS INC / MA · 2026-11-03 · Importance 54 · Surprise 40 · In source text

Cost of sales was $526.1 million in the third quarter of 2026, up 27% year over year, and $1,408.1 million for the first nine months, up 19%.,Cost of sales rose to 15.3% of net product revenue in the third quarter and 14.4% for the first nine months, compared with 13.5% in each 2025 period.,The higher cost ratio reflected product mix and Crinetics-related PALSONIFY amortization of $15.3 million and acquired inventory step-up expense of $5.4 million for September, partly offset by lower blended CF royalty rates.,Management said PALSONIFY amortization and acquired inventory step-up expenses will increase in future quarters.

Key facts

• Vertex recorded $15.3 million of PALSONIFY intangible asset amortization expense and $5.4 million of PALSONIFY acquired inventory step-up expense for September 2026; both expenses are expected to increase in future quarters. source
• Vertex’s cost of sales as a percentage of net product revenues increased to 15.3% in the third quarter of 2026 from 13.5% in the third quarter of 2025, due to product mix and Crinetics-related intangible amortization, partly offset by a lower blended CF royalty rate. source
• Vertex’s cost of sales as a percentage of net product revenues increased to 15.3% in the third quarter and 14.4% in the first nine months, from 13.5% in both comparable 2025 periods, due to product mix and PALSONIFY amortization and inventory step-up costs, partly offset by lower CF royalties. source

Impact estimates