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Vertex Pharmaceuticals Gross Margin %

: 88.08% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Vertex Pharmaceuticals's Gross Profit for the three months ended in Jun. 2022 was $1,934 Mil. Vertex Pharmaceuticals's Revenue for the three months ended in Jun. 2022 was $2,196 Mil. Therefore, Vertex Pharmaceuticals's Gross Margin % for the quarter that ended in Jun. 2022 was 88.08%.


The historical rank and industry rank for Vertex Pharmaceuticals's Gross Margin % or its related term are showing as below:

VRTX' s Gross Margin % Range Over the Past 10 Years
Min: 81.67   Med: 88   Max: 89.49
Current: 88.13


During the past 13 years, the highest Gross Margin % of Vertex Pharmaceuticals was 89.49%. The lowest was 81.67%. And the median was 88.00%.

VRTX's Gross Margin % is ranked better than
81.53% of 720 companies
in the Biotechnology industry
Industry Median: 61.58 vs VRTX: 88.13

Vertex Pharmaceuticals had a gross margin of 88.08% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vertex Pharmaceuticals was 0.00% per year.


Vertex Pharmaceuticals Gross Margin % Historical Data

The historical data trend for Vertex Pharmaceuticals's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vertex Pharmaceuticals Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 88.95 86.56 86.84 88.14 88.06

Vertex Pharmaceuticals Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 87.29 88.08 88.06 88.28 88.08

Competitive Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Vertex Pharmaceuticals Gross Margin % Distribution

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's Gross Margin % falls into.



Vertex Pharmaceuticals Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Vertex Pharmaceuticals's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=6670.2 / 7574.4
=(Revenue - Cost of Goods Sold) / Revenue
=(7574.4 - 904.2) / 7574.4
=88.06 %

Vertex Pharmaceuticals's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1934.4 / 2196.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2196.2 - 261.8) / 2196.2
=88.08 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Vertex Pharmaceuticals  (NAS:VRTX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Vertex Pharmaceuticals had a gross margin of 88.08% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Vertex Pharmaceuticals Gross Margin % Related Terms

Thank you for viewing the detailed overview of Vertex Pharmaceuticals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Vertex Pharmaceuticals Business Description

Vertex Pharmaceuticals logo
Address
50 Northern Avenue, Boston, MA, USA, 02210
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. In addition to its focus on cystic fibrosis, Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta-thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using non-opioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Executives
Upadhyay Suketu director 345 E. MAIN STREET WARSAW IN 46580
Garber Alan M director 3355 MILTON COURT MOUNTAIN VIEW CA 94040
Kearney Terrence C director IN CARE OF HOSPIRA, INC. 275 NORTH FIELD DRIVE LAKE FOREST IL 60045
Carney Lloyd director C/O MICROMUSE INC 139 TOWNSEND ST SAN FRANCISCO CA 94107
Mckenzie Diana director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Bhatia Sangeeta N. director C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Lee Yuchun director 170 TRACER LA. WALTHAM MA 02451
Ambrose Kristen officer: SVP & Chief Accounting Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Mcglynn Margaret G director C/O MERCK & CO INC ONE MERCK DRIVE PO BOX 100 WHITEHOUSE STATION NJ 08889-0100
Liu Joy officer: SVP, General Counsel C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Tatsis Ourania officer: EVP, Chief Reg. & Quality Off. C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Bozic Carmen officer: EVP and CMO C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Wagner Charles F Jr officer: EVP & Chief Financial Officer C/O MILLIPORE CORP BILLERICA MA 01820
Arbuckle Stuart A officer: EVP, COO VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST. CAMBRIDGE MA 02139
Kewalramani Reshma director, officer: CEO & President C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210

Vertex Pharmaceuticals Headlines

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