Vertex raised its sales forecast. Its spending budget rose faster.

Vertex raised its annual sales forecast by $50 million at the midpoint. Its expected research and commercial spending increased by about $300 million on an adjusted basis.

The difference reflects a changing business: Vertex completed its Crinetics acquisition on September 1. The deal adds a new medicine and development programs, along with the cost of supporting them.

What changed in the sales forecast?

The new annual revenue range is $13.15 billion to $13.25 billion, up from $13.1 billion to $13.2 billion. It includes $40 million to $50 million from PALSONIFY, the acromegaly medicine acquired with Crinetics.

Research by Ticker Byline shows that the new PALSONIFY forecast is similar in size to the entire $50 million increase at the midpoint of the revenue range. August's forecast had explicitly excluded the then-pending acquisition.

The spending forecast also now includes Crinetics. Vertex expects approximately $6 billion of adjusted research, acquired research and selling and administrative expenses, versus the earlier $5.65 billion to $5.75 billion range.

That budget supports the acquired business, ongoing drug launches and preparations for a possible kidney-medicine launch. It excludes selected items such as stock compensation and acquisition-related costs.

More sales, lower adjusted profit

Quarterly revenue rose 12% to $3.441 billion. Cystic fibrosis medicines generated $3.273 billion, still about 95% of total sales. CASGEVY and JOURNAVX continued to grow, while PALSONIFY contributed $10.1 million in its first month under Vertex.

GAAP net income fell 40% to $653.6 million. The quarter included $502 million of acquisition-related costs, primarily compensation for cash-settled Crinetics equity awards and transaction expenses.

Even after adjustments, net income fell 2% to $1.214 billion. Adjusted research and commercial expenses rose 19%, and interest expense increased to $36 million from $3.3 million. The deal and launches are bringing costs alongside the growing revenue.

The acquisition changes the balance sheet

Crinetics cost approximately $10 billion in equity value, or $9 billion after acquired cash and securities. Vertex borrowed $4.5 billion through a term loan in Q3.

Cash and marketable securities totaled $9.8 billion at September 30, versus $12.3 billion at year-end. The balance gives Vertex resources for its launch plans even after the acquisition.

One upcoming milestone is the FDA's November 30 target decision date for povetacicept in IgA nephropathy, a kidney disease. Approval would add another commercial business to support.

The Vertex company profile tracks comparable results, forecasts, cash and debt, along with the completed Crinetics acquisition.