VRTXVertex Pharmaceuticals

Expenses Total Revenues In 2025, our total revenues increased to $12.0 billion as compared to $11.0 billion in 2024, primarily due to continued strong demand for TRIKAFTA/KAFTRIO as well as contributions from our launches of ALYFTREK, JOURNAVX and CASGEVY. Cost of Sales Our cost of sales as a percentage of our net product revenues decreased from 13.9% in 2024 to 13.8% in 2025 as a result of a lower overall royalty rate for our CF medicines, partially offset by changes in our product mix, and investments in network expansion and manufacturing process improvements. Total R&D and SG&A Our total research and development (“R&D”), (“R&D”) and selling, general and administrative (“SG&A”) Expenses expenses increased to $5.7 billion in 2025 as compared to $5.1 billion in 2024 as compared to $4.3 billion in 2023, 2024, primarily due to continued increased investment to support additional therapies in mid-to-late stage development commercialize our new products and increased commercial investments to support launches of advance our therapies globally. R&D pipeline. AIPR&D Expenses In 2024, total 2025, our acquired in-process research and development expenses (“AIPR&D”) of $4.6 billion $133.0 million included various upfront and milestone payments related to our collaboration and in- licensing arrangements. In 2024, AIPR&D included $4.4 billion related to resulting from our acquisition of Alpine Immune Sciences, Inc. (“Alpine”). Cost (“Alpine”), which was accounted for as an asset acquisition. Cash Our total cash, cash equivalents and marketable securities increased to $12.3 billion as of sales were 14% of our net product revenues in 2024 December 31, 2025 as compared to 13% in 2023, with the increase $11.2 billion as of December 31, 2024 primarily due to costs associated with CASGEVY. cash flows provided by our operating activities partially offset by repurchases of our common stock.

We are subject to ongoing tax audits in various jurisdictions, and local tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the probable outcomes of these audits to determine the appropriateness of our tax provision, and we have established contingency reserves for material tax exposures. However, there can be no assurance that we will accurately predict the outcomes of these disputes or other tax audits or that issues raised by tax authorities will be resolved at a financial cost that does not exceed our related reserves and the actual outcomes of these disputes and other tax audits could have a material impact on our results of operations or financial condition.