0000875320-24-000139 | 10-Q | XBRL Viewer | Vertex Pharmaceuticals INC MA

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component:


			Unrealized Holding Gains (Losses), Net of Tax
	Foreign Currency Translation Adjustment		On Available-For-Sale Debt Securities		On Foreign Currency Forward Contracts		Total

	(in millions)
Balance at December 31, 2023	$	1.1	$	9.6	$	(25.0)	$	(14.3)
Other comprehensive income (loss) before reclassifications	6.8		(20.5)		47.2		33.5
Amounts reclassified from accumulated other comprehensive income (loss)	—		0.8		(2.7)		(1.9)
Net current period other comprehensive income (loss)	6.8		(19.7)		44.5		31.6
Balance at March 31, 2024	$	7.9	$	(10.1)	$	19.5	$	17.3

Balance at December 31, 2022	$	(25.0)	$	(0.1)	$	25.9	$	0.8
Other comprehensive income (loss) before reclassifications	10.0		2.9		(9.6)		3.3
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(17.2)		(17.2)
Net current period other comprehensive income (loss)	10.0		2.9		(26.8)		(13.9)
Balance at March 31, 2023	$	(15.0)	$	2.8	$	(0.9)	$	(13.1)

Marketable Securities and Equity Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Marketable Securities and Equity Investments

A summary of our cash equivalents and marketable debt and equity securities, which are recorded at fair value, is shown below:


	As of March 31, 2024								As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

	(in millions)
Cash equivalents	$	5,865.3	$	—	$	—	$	5,865.3	$	7,033.9	$	—	$	—	$	7,033.9
Marketable securities:
U.S. Treasury securities	1,395.1		1.1		(6.8)		1,389.4		544.5		3.0		(1.0)		546.5
U.S. government agency securities	357.7		0.1		(1.1)		356.7		424.8		0.9		(0.5)		425.2
Asset-backed securities	793.5		0.7		(1.6)		792.6		304.9		1.4		(0.3)		306.0
Certificates of deposit	42.6		0.0		(0.0)		42.6		33.7		0.0		(0.0)		33.7
Corporate debt securities	2,637.4		4.3		(9.5)		2,632.2		1,794.0		10.5		(1.7)		1,802.8
Commercial paper	137.9		0.0		(0.1)		137.8		186.8		0.1		(0.1)		186.8
Total marketable available-for-sale debt securities	5,364.2		6.2		(19.1)		5,351.3		3,288.7		15.9		(3.6)		3,301.0
Corporate equity securities	72.1		—		(28.7)		43.4		72.1		—		(26.1)		46.0
Total marketable securities	5,436.3		6.2		(47.8)		5,394.7		3,360.8		15.9		(29.7)		3,347.0
Total cash equivalents and marketable securities	$	11,301.6	$	6.2	$	(47.8)	$	11,260.0	$	10,394.7	$	15.9	$	(29.7)	$	10,380.9

Amounts in the table above at fair value were classified on our condensed consolidated balance sheets as follows:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Cash and cash equivalents	$	5,865.3	$	7,033.9
Marketable securities	1,013.3		849.2
Long-term marketable securities	4,381.4		2,497.8
Total	$	11,260.0	$	10,380.9

Marketable available-for-sale debt securities by contractual maturity were as follows:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Matures within one year	$	969.9	$	803.2
Matures after one year through five years	4,273.3		2,495.6
Matures after five years	108.1		2.2
Total	$	5,351.3	$	3,301.0

We did not record any allowances for credit losses to adjust the fair value of our marketable available-for-sale debt securities or gross realized gains or losses in the three months ended March 31, 2024 and 2023. Additionally, we did not record any realized gains or losses that were material to our condensed consolidated statements of income during the three months ended March 31, 2024 and 2023. As of March 31, 2024, we held marketable available-for-sale debt securities with a total fair value of $4.0 billion that were in unrealized loss positions totaling $19.1 million. Included in this amount were marketable available-for sale debt securities with a total fair value of $53.8 million and total unrealized loss of $0.4 million that had been in unrealized loss positions for greater than twelve months. We intend to hold these investments until maturity and do not expect to incur realized losses on these investments when they mature.

We record changes in the fair value of our investments in corporate equity securities to “Other (expense) income, net” in our condensed consolidated statements of income. During the three months ended March 31, 2024 and 2023, our net unrealized (losses) gains on corporate equity securities with readily determinable fair values held at the conclusion of each period were as follows:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Net unrealized (losses) gains		$	(2.7)	$	6.4

As of March 31, 2024, the carrying value of our equity investments without readily determinable fair values, which are recorded in “Other assets” on our condensed consolidated balance sheets, was $74.3 million. During the three months ended March 31, 2024, we reduced the carrying value of one of our equity investments without a readily determinable fair value by $24.3 million based on an observable change in price.

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Product revenues, net	$ 2,690.6	$ 2,374.8
United States
Disaggregation of Revenue [Line Items]
Product revenues, net	1,519.9	1,403.8
Total product revenues outside of the United States
Disaggregation of Revenue [Line Items]
Product revenues, net	1,170.7	971.0
Europe
Disaggregation of Revenue [Line Items]
Product revenues, net	967.4	807.2
Other
Disaggregation of Revenue [Line Items]
Product revenues, net	203.3	163.8
TRIKAFTA/KAFTRIO
Disaggregation of Revenue [Line Items]
Product revenues, net	2,483.6	2,096.7
Other CF products
Disaggregation of Revenue [Line Items]
Product revenues, net	$ 207.0	$ 278.1

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 2022 Credit Facility In July 2022, Vertex and certain of its subsidiaries entered into a $500.0 million unsecured revolving facility (the “Credit Agreement”) with Bank of America, N.A., as administrative agent and the lenders referred to therein (the “Lenders”), which matures on July 1, 2027. The Credit Agreement was not drawn upon at closing and we have not drawn upon it to date. Amounts drawn pursuant to the Credit Agreement, if any, will be used for general corporate purposes. Subject to satisfaction of certain conditions, we may request that the borrowing capacity for the Credit Agreement be increased by an additional $500.0 million. Additionally, the Credit Agreement provides a sublimit of $100.0 million for letters of credit. Any amounts borrowed under the Credit Agreement will bear interest, at our option, at either a base rate or a Secured Overnight Financing Rate (“SOFR”), in each case plus an applicable margin. Under the Credit Agreement, the applicable margins on base rate loans range from 0.000% to 0.500% and the applicable margins on SOFR loans range from 1.000% to 1.500%, in each case based on our consolidated leverage ratio (the ratio of our total consolidated funded indebtedness to our consolidated EBITDA for the most recently completed four fiscal quarter period). Any amounts borrowed pursuant to the Credit Agreement are guaranteed by certain of our existing and future domestic subsidiaries, subject to certain exceptions. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants, including a financial covenant to maintain subject to certain limited exceptions, a consolidated leverage ratio of 3.50 to 1.00, subject to an increase to 4.00 to 1.00 following a material acquisition. As of March 31, 2024, we were in compliance with the covenants described above. The Credit Agreement also contains customary events of default. In the case of a continuing event of default, the administrative agent would be entitled to exercise various remedies, including the acceleration of amounts due under outstanding loans. Direct costs related to the Credit Agreement are recorded over its term and were not material to our financial statements. Guaranties and Indemnifications As permitted under Massachusetts law, our Articles of Organization and By-laws provide that we will indemnify certain of our officers and directors for certain claims asserted against them in connection with their service as an officer or director. The maximum potential amount of future payments that we could be required to make under these indemnification provisions is unlimited. However, we have purchased directors’ and officers’ liability insurance policies that could reduce our monetary exposure and enable us to recover a portion of any future amounts paid. No indemnification claims currently are outstanding, and we believe the estimated fair value of these indemnification arrangements is minimal. We customarily agree in the ordinary course of our business to indemnification provisions in agreements with clinical trial investigators and sites in our product development programs, sponsored research agreements with academic and not-for-profit institutions, various comparable agreements involving parties performing services for us, and our real estate leases. We also customarily agree to certain indemnification provisions in our drug discovery, development and commercialization collaboration agreements. With respect to our clinical trials and sponsored research agreements, these indemnification provisions typically apply to any claim asserted against the investigator or the investigator’s institution relating to personal injury or property damage, violations of law or certain breaches of our contractual obligations arising out of the research or clinical testing of our compounds or product candidates. With respect to lease agreements, the indemnification provisions typically apply to claims asserted against the landlord relating to personal injury or property damage caused by us, to violations of law by us or to certain breaches of our contractual obligations. The indemnification provisions appearing in our collaboration agreements are similar to those for the other agreements discussed above, but in addition provide some limited indemnification for our collaborator in the event of third-party claims alleging infringement of intellectual property rights. In each of the cases above, the indemnification obligation generally survives the termination of the agreement for some extended period, although we believe the obligation typically has the most relevance during the contract term and for a short period of time thereafter. The maximum potential amount of future payments that we could be required to make under these provisions is generally unlimited. We have purchased insurance policies covering personal injury, property damage and general liability that reduce our exposure for indemnification and would enable us in many cases to recover all or a portion of any future amounts paid. We have never paid any material amounts to defend lawsuits or settle claims related to these indemnification provisions. Accordingly, we believe the estimated fair value of these indemnification arrangements is minimal. Other Contingencies We have certain contingent liabilities that arise in the ordinary course of our business activities. We accrue for such contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Other than our contingent consideration liabilities discussed in Note E, “Fair Value Measurements,” there were no material contingent liabilities accrued as of March 31, 2024 or December 31, 2023.

Marketable Securities and Equity Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Cash Equivalents and Marketable Debt and Equity Securities

A summary of our cash equivalents and marketable debt and equity securities, which are recorded at fair value, is shown below:


	As of March 31, 2024								As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

	(in millions)
Cash equivalents	$	5,865.3	$	—	$	—	$	5,865.3	$	7,033.9	$	—	$	—	$	7,033.9
Marketable securities:
U.S. Treasury securities	1,395.1		1.1		(6.8)		1,389.4		544.5		3.0		(1.0)		546.5
U.S. government agency securities	357.7		0.1		(1.1)		356.7		424.8		0.9		(0.5)		425.2
Asset-backed securities	793.5		0.7		(1.6)		792.6		304.9		1.4		(0.3)		306.0
Certificates of deposit	42.6		0.0		(0.0)		42.6		33.7		0.0		(0.0)		33.7
Corporate debt securities	2,637.4		4.3		(9.5)		2,632.2		1,794.0		10.5		(1.7)		1,802.8
Commercial paper	137.9		0.0		(0.1)		137.8		186.8		0.1		(0.1)		186.8
Total marketable available-for-sale debt securities	5,364.2		6.2		(19.1)		5,351.3		3,288.7		15.9		(3.6)		3,301.0
Corporate equity securities	72.1		—		(28.7)		43.4		72.1		—		(26.1)		46.0
Total marketable securities	5,436.3		6.2		(47.8)		5,394.7		3,360.8		15.9		(29.7)		3,347.0
Total cash equivalents and marketable securities	$	11,301.6	$	6.2	$	(47.8)	$	11,260.0	$	10,394.7	$	15.9	$	(29.7)	$	10,380.9

Amounts in the table above at fair value were classified on our condensed consolidated balance sheets as follows:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Cash and cash equivalents	$	5,865.3	$	7,033.9
Marketable securities	1,013.3		849.2
Long-term marketable securities	4,381.4		2,497.8
Total	$	11,260.0	$	10,380.9

Marketable available-for-sale debt securities by contractual maturity were as follows:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Matures within one year	$	969.9	$	803.2
Matures after one year through five years	4,273.3		2,495.6
Matures after five years	108.1		2.2
Total	$	5,351.3	$	3,301.0

Schedule of Company's Net Unrealized (Losses) Gains on Corporate Equity Securities

During the three months ended March 31, 2024 and 2023, our net unrealized (losses) gains on corporate equity securities with readily determinable fair values held at the conclusion of each period were as follows:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Net unrealized (losses) gains		$	(2.7)	$	6.4

Earnings Per Share - Anti-dilutive Securities (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Unvested restricted stock units (including PSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share (in shares)	0.0	0.6

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 1,099.6	$ 699.8
Other comprehensive income (loss):
Unrealized holding (losses) gains on available-for-sale debt securities, net of tax of $5.4 and $(0.8), respectively	(19.7)	2.9
Unrealized gains (losses) on foreign currency forward contracts, net of tax of $(12.3) and $7.4, respectively	44.5	(26.8)
Foreign currency translation adjustment	6.8	10.0
Total other comprehensive income (loss)	31.6	(13.9)
Comprehensive income	$ 1,131.2	$ 685.9

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Basis of Presentation and Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared by Vertex Pharmaceuticals Incorporated (“Vertex,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements reflect the operations of Vertex and our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated. We operate in one segment, pharmaceuticals. Certain information and footnote disclosures normally included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”) have been condensed or omitted. These interim financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position and results of income for the interim periods ended March 31, 2024 and 2023. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2023, which are contained in our 2023 Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our condensed consolidated financial statements, and the amounts of revenues and expenses during the reported periods. We base our estimates on historical experience and various other assumptions, including in certain circumstances future projections that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Changes in estimates are reflected in reported results in the period in which they become known.
Recently Adopted and Recently Issued Accounting Standards	Recently Adopted Accounting Standards As noted in Note A, “Nature of Business and Accounting Policies,” in our 2023 Annual Report on Form 10-K, we did not adopt any accounting standards that had a significant impact on our consolidated financial statements in the three years ended December 31, 2023. Recently Issued Accounting Standards Segment Reporting In 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires public entities to disclose significant segment expenses and other segment items. ASU 2023-07 also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 becomes effective for the annual period starting on January 1, 2024, and for the interim periods starting on January 1, 2025. We are in the process of analyzing the impact that the adoption of ASU 2023-07 will have on our segment disclosures. Income Tax Disclosures In 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 becomes effective for the annual period starting on January 1, 2025. We are in the process of analyzing the impact that the adoption of ASU 2023-09 will have on our income tax disclosures.
Contract Liabilities	Upon exceeding the annual reimbursement amount provided by the customer’s contract with us, our CF products are provided free of charge, which is a material right. These contracts include upfront payments and fees. If we estimate that we will exceed the annual reimbursement amount under a contract, we defer a portion of the consideration received for shipments made up to the annual reimbursement limit as a portion of “Other current liabilities.” Once the reimbursement limit has been reached, we recognize the deferred amount as revenue when we ship the free products. Our CF product revenue contracts include performance obligations that are one year or less. Our contract liabilities at the end of each fiscal year relate to contracts with CF annual reimbursement limits in international markets in which the annual period associated with the contract is not the same as our fiscal year. In these markets, we recognize revenues related to performance obligations satisfied in previous years; however, these revenues do not relate to any performance obligations that were satisfied more than 12 months prior to the beginning of the current year.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The following table sets forth the computation of basic and diluted net income per common share for the periods ended:


	Three Months Ended March 31,
		2024		2023

		(in millions, except per share amounts)
Net income		$	1,099.6	$	699.8

Basic weighted-average common shares outstanding		258.2		257.4
Effect of potentially dilutive securities:
Restricted stock units (including performance-based restricted stock units (“PSUs”))		1.7		1.6
Stock options		1.2		1.3
Employee stock purchase program		0.0		0.0
Diluted weighted-average common shares outstanding		261.1		260.3

Basic net income per common share		$	4.26	$	2.72
Diluted net income per common share		$	4.21	$	2.69

We did not include the securities in the following table in the computation of the diluted net income per common share because the effect would have been anti-dilutive during each period:


	Three Months Ended March 31,
		2024	2023

		(in millions)
Unvested restricted stock units (including PSUs)		—	0.6

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event In April 2024, we entered into an agreement and plan of merger (the “Alpine Merger Agreement”) to acquire all of the issued and outstanding shares of common stock of Alpine Immune Sciences, Inc. (“Alpine”), a publicly traded biotechnology company focused on discovering and developing innovative, protein-based immunotherapies, for approximately $4.9 billion in cash. Alpine’s lead molecule, povetacicept, is a highly potent and effective dual antagonist of BAFF (“B cell activating factor”) and APRIL (“a proliferation inducing ligand”). Through Phase 2 development, povetacicept has shown potential best-in-class efficacy in IgA nephropathy (“IgAN”), a serious, progressive, autoimmune disease of the kidney that can lead to end-stage-renal disease. The transaction is expected to close in the second quarter of 2024, subject to certain customary closing conditions, including the completion of a tender offer, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and other conditions. We will account for the acquisition in the period that it closes. We intend to fund the acquisition with our cash and cash equivalents.

Hedging (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Cash Flow Hedging Instruments

The following table summarizes the notional amount in U.S. dollars of our outstanding foreign currency forward contracts designated as cash flow hedges under U.S. GAAP:


	As of March 31, 2024		As of December 31, 2023

Foreign Currency	(in millions)
Euro	$	1,305.5	$	1,720.6
Canadian dollar	190.0		229.5
British pound sterling	186.4		225.0
Australian dollar	122.1		153.3
Swiss Franc	50.5		63.9
Total foreign currency forward contracts	$	1,854.5	$	2,392.3

Schedule of Foreign Exchange Contracts, Condensed Consolidated Statements of Operations

During the three months ended March 31, 2024 and 2023, we recognized the following related to foreign currency forward contracts in our condensed consolidated statements of income:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Designated as hedging instruments - Reclassified from AOCI
Product revenues, net		$	3.4	$	22.0
Not designated as hedging instruments
Other (expense) income, net		$	(2.4)	$	3.6

Total reported in the Condensed Consolidated Statements of Income
Product revenues, net		$	2,690.6	$	2,374.8
Other (expense) income, net		$	(31.2)	$	1.3

Schedule of Foreign Exchange Contracts

The following table summarizes the fair value of our outstanding foreign currency forward contracts designated as cash flow hedges under U.S. GAAP included on our condensed consolidated balance sheets:

As of March 31, 2024

Assets

Liabilities

Classification

Fair Value

Classification

Fair Value

(in millions)

Prepaid expenses and other current assets

26.3

Other current liabilities

(1.4)

As of December 31, 2023

Assets

Liabilities

Classification

Fair Value

Classification

Fair Value

(in millions)

Prepaid expenses and other current assets

1.8

Other current liabilities

(33.7)

Schedule of Offsetting Assets

The following table summarizes the potential effect of offsetting derivatives by type of financial instrument designated as cash flow hedges under U.S. GAAP on our condensed consolidated balance sheets:


	As of March 31, 2024
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	26.3	$	—	$	26.3	$	(1.4)	$	24.9
Total liabilities	(1.4)		—		(1.4)		1.4		—


	As of December 31, 2023
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	1.8	$	—	$	1.8	$	(1.8)	$	—
Total liabilities	(33.7)		—		(33.7)		1.8		(31.9)

Schedule of Offsetting Liabilities


	As of March 31, 2024
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	26.3	$	—	$	26.3	$	(1.4)	$	24.9
Total liabilities	(1.4)		—		(1.4)		1.4		—


	As of December 31, 2023
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	1.8	$	—	$	1.8	$	(1.8)	$	—
Total liabilities	(33.7)		—		(33.7)		1.8		(31.9)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 95.7	$ 78.7
Work-in-process	601.8	525.1
Finished goods	115.6	135.0
Total	$ 813.1	$ 738.8

Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Disaggregation of Revenue

Revenues by Product

“Product revenues, net” consisted of the following:


	Three Months Ended March 31,
		2024		2023

		(in millions)
TRIKAFTA/KAFTRIO		$	2,483.6	$	2,096.7
Other CF products		207.0		278.1
Total product revenues, net		$	2,690.6	$	2,374.8

Product Revenues by Geographic Location

“Product revenues, net” by geographic region, based on the location of the customer, consisted of the following:


	Three Months Ended March 31,
		2024		2023

		(in millions)
United States		$	1,519.9	$	1,403.8
Outside of the United States
Europe		967.4		807.2
Other		203.3		163.8
Total product revenues outside of the United States		1,170.7		971.0
Total product revenues, net		$	2,690.6	$	2,374.8

Contract Liabilities

We had contract liabilities of $275.8 million and $170.3 million as of March 31, 2024 and December 31, 2023, respectively, related to annual contracts with government-owned and supported customers in international markets that limit the amount of annual reimbursement we can receive for our cystic fibrosis (“CF”) products. Upon exceeding the annual reimbursement amount provided by the customer’s contract with us, our CF products are provided free of charge, which is a material right. These contracts include upfront payments and fees. If we estimate that we will exceed the annual reimbursement amount under a contract, we defer a portion of the consideration received for shipments made up to the annual reimbursement limit as a portion of “Other current liabilities.” Once the reimbursement limit has been reached, we recognize the deferred amount as revenue when we ship the free products. Our CF product revenue contracts include performance obligations that are one year or less.

Our contract liabilities at the end of each fiscal year relate to contracts with CF annual reimbursement limits in international markets in which the annual period associated with the contract is not the same as our fiscal year. In these markets, we recognize revenues related to performance obligations satisfied in previous years; however, these revenues do not relate to any performance obligations that were satisfied more than 12 months prior to the beginning of the current year.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
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+ Details

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2022		257,000,000.0
Beginning balance at Dec. 31, 2022	$ 13,912.7	$ 2.6	$ 7,386.5	$ 0.8	$ 6,522.8
Increase (Decrease) in Stockholders' Equity
Other comprehensive (loss) income, net of tax	(13.9)			(13.9)
Net income	$ 699.8				699.8
Repurchase of common stock (in shares)	(459,017)	(500,000)
Repurchases of common stock	$ (135.6)	$ (0.0)	(135.6)
Common stock withheld for employee tax obligations (in shares)		(600,000)
Common stock withheld for employee tax obligations	(166.6)	$ (0.0)	(166.6)
Issuance of common stock under benefit plans (in shares)		1,600,000
Issuance of common stock under benefit plans	13.1	$ 0.0	13.1
Stock-based compensation expense	122.8		122.8
Ending balance (in shares) at Mar. 31, 2023		257,500,000
Ending balance at Mar. 31, 2023	$ 14,432.3	$ 2.6	7,220.2	(13.1)	7,222.6
Beginning balance (in shares) at Dec. 31, 2023	257,695,221	257,700,000
Beginning balance at Dec. 31, 2023	$ 17,580.4	$ 2.6	7,449.7	(14.3)	10,142.4
Increase (Decrease) in Stockholders' Equity
Other comprehensive (loss) income, net of tax	31.6			31.6
Net income	$ 1,099.6				1,099.6
Repurchase of common stock (in shares)	(335,773)	(300,000)
Repurchases of common stock	$ (140.4)	$ (0.0)	(140.4)
Common stock withheld for employee tax obligations (in shares)		(600,000)
Common stock withheld for employee tax obligations	(233.5)	$ (0.0)	(233.5)
Issuance of common stock under benefit plans (in shares)		1,500,000
Issuance of common stock under benefit plans	15.9	$ 0.0	15.9
Stock-based compensation expense	$ 193.0		193.0
Ending balance (in shares) at Mar. 31, 2024	258,296,249	258,300,000
Ending balance at Mar. 31, 2024	$ 18,546.6	$ 2.6	$ 7,284.7	$ 17.3	$ 11,242.0

Stock-based Compensation Expense and Share Repurchase Programs (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense by Line Item

During the three months ended March 31, 2024 and 2023, we recognized the following stock-based compensation expense:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Stock-based compensation expense by type of award:
Restricted stock units (including PSUs)		$	187.2	$	115.9
ESPP share issuances		5.8		5.5
Stock options		—		1.4
Stock-based compensation expense related to inventories		(1.1)		(0.4)
Total stock-based compensation expense included in “Total costs and expenses”		$	191.9	$	122.4

Stock-based compensation expense by line item:
Cost of sales		$	1.8	$	1.9
Research and development expenses		119.4		76.3
Selling, general and administrative expenses		70.7		44.2
Total stock-based compensation expense included in costs and expenses		191.9		122.4
Income tax effect		(79.0)		(40.6)
Total stock-based compensation expense, net of tax		$	112.9	$	81.8

Commitments and Contingencies (Details) - USD ($)	1 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jul. 31, 2022	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Indemnification claims		$ 0
Contingent liabilities		$ 0	$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 500,000,000
Line of credit facility additional borrowing capacity	$ 500,000,000
Debt covenant, consolidated leverage ratio	3.50
Debt covenant, increase in consolidated leverage ratio	4.00
Revolving Credit Facility \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.00%
Revolving Credit Facility \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Revolving Credit Facility \| SOFR Loan \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Revolving Credit Facility \| SOFR Loan \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.50%
Letters of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 100,000,000

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Product revenues, net	$ 2,690.6	$ 2,374.8
Costs and expenses:
Cost of sales	342.6	266.9
Research and development expenses	789.1	742.6
Acquired in-process research and development expenses	76.8	347.1
Selling, general and administrative expenses	342.7	241.1
Change in fair value of contingent consideration	(0.1)	(1.9)
Total costs and expenses	1,551.1	1,595.8
Income from operations	1,139.5	779.0
Interest income	181.2	122.6
Interest expense	(10.4)	(11.4)
Other (expense) income, net	(31.2)	1.3
Income before provision for income taxes	1,279.1	891.5
Provision for income taxes	179.5	191.7
Net income	$ 1,099.6	$ 699.8
Net income per common share:
Basic (in dollars per share)	$ 4.26	$ 2.72
Diluted (in dollars per share)	$ 4.21	$ 2.69
Shares used in per share calculations:
Basic (in shares)	258.2	257.4
Diluted (in shares)	261.1	260.3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Unrealized holding (losses) gains on marketable securities, tax	$ 5.4	$ (0.8)
Unrealized gains (losses) on foreign currency forward contracts, tax	$ (12.3)	$ 7.4

Hedging - Notional Amount (Details) - Foreign currency forward contracts - Designated as Hedging Instruments - Cash Flow Hedging - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Notional amount of foreign currency forward contract	$ 1,854.5	$ 2,392.3
Euro
Derivative [Line Items]
Notional amount of foreign currency forward contract	1,305.5	1,720.6
Canadian dollar
Derivative [Line Items]
Notional amount of foreign currency forward contract	190.0	229.5
British pound sterling
Derivative [Line Items]
Notional amount of foreign currency forward contract	186.4	225.0
Australian dollar
Derivative [Line Items]
Notional amount of foreign currency forward contract	122.1	153.3
Swiss Franc
Derivative [Line Items]
Notional amount of foreign currency forward contract	$ 50.5	$ 63.9

Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

We are subject to U.S. federal, state, and foreign income taxes. During the three months ended March 31, 2024 and 2023, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes:


	Three Months Ended March 31,
		2024		2023

		(in millions, except percentages)
Income before provision for income taxes		$	1,279.1	$	891.5
Provision for income taxes		$	179.5	$	191.7


Effective tax rate															14.0		%				21.5		%

Our effective tax rate for the three months ended March 31, 2024 was lower than the U.S. statutory rate primarily due to changes in our unrecognized tax positions as well as excess tax benefits related to stock-based compensation.

Our effective tax rate for the three months ended March 31, 2023 was higher than the U.S. statutory rate primarily due to an increase in our unrecognized tax positions partially offset by excess tax benefits related to stock-based compensation.

We have reviewed the tax positions taken, or to be taken, in our tax returns for all tax years currently open to examination by a taxing authority. As of March 31, 2024 and December 31, 2023, we had $301.6 million and $288.7 million, respectively, of net unrecognized tax benefits, which would affect our tax rate if recognized.

We file U.S. federal income tax returns and income tax returns in various state, local and foreign jurisdictions. We have various income tax audits ongoing at any time throughout the world. Except for jurisdictions where we have net operating losses or tax credit carryforwards, we are no longer subject to any tax assessment from tax authorities for years prior to 2015 in jurisdictions that have a material impact on our consolidated financial statements. In 2023, we came to settlement with the United Kingdom’s HM Revenue & Customs (“HMRC”) with respect to our tax positions for 2015 through 2020 and subsequently received Closure Notices for those periods during the three months ended March 31, 2024. Due to the nature of the adjustments, we will be asserting our rights under the U.S./U.K. Income Tax Convention pursuant to the mutual agreement procedures for the relief of double taxation for these matters.

In December 2022, European Union member states reached an agreement to implement the minimum tax component (“Pillar Two”) of the Organization for Economic Co-operation and Development’s (the “OECD’s”), global international tax reform initiative with effective dates of January 1, 2024 and 2025. In July 2023, the OECD published Administrative Guidance proposing certain safe harbors that effectively extend certain effective dates to January 1, 2027. The assessment of our potential 2024 exposure for the global per-country minimum tax of 15%, based on our forecasted 2024 results, is immaterial to our condensed consolidated financial statements as the effective tax rates in most of the jurisdictions in which we operate are above 15%.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Hedging - Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Product revenues, net	$ 2,690.6	$ 2,374.8
Other (expense) income, net	(31.2)	1.3
Foreign Currency Forward Contract \| Reclassification out of Accumulated Other Comprehensive Income \| Foreign currency forward contracts \| Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Product revenues, net	3.4	22.0
Foreign Currency Forward Contract \| Reclassification out of Accumulated Other Comprehensive Income \| Foreign currency forward contracts \| Not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Other (expense) income, net	$ (2.4)	$ 3.6

- Definition

+ References

+ Details

Basis of Presentation and Accounting Policies	3 Months Ended
Basis of Presentation and Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation and Accounting Policies	Basis of Presentation and Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared by Vertex Pharmaceuticals Incorporated (“Vertex,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements reflect the operations of Vertex and our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated. We operate in one segment, pharmaceuticals. Certain information and footnote disclosures normally included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”) have been condensed or omitted. These interim financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position and results of income for the interim periods ended March 31, 2024 and 2023. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2023, which are contained in our 2023 Annual Report on Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our condensed consolidated financial statements, and the amounts of revenues and expenses during the reported periods. We base our estimates on historical experience and various other assumptions, including in certain circumstances future projections that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Changes in estimates are reflected in reported results in the period in which they become known. Recently Adopted Accounting Standards As noted in Note A, “Nature of Business and Accounting Policies,” in our 2023 Annual Report on Form 10-K, we did not adopt any accounting standards that had a significant impact on our consolidated financial statements in the three years ended December 31, 2023. Recently Issued Accounting Standards Segment Reporting In 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires public entities to disclose significant segment expenses and other segment items. ASU 2023-07 also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 becomes effective for the annual period starting on January 1, 2024, and for the interim periods starting on January 1, 2025. We are in the process of analyzing the impact that the adoption of ASU 2023-07 will have on our segment disclosures. Income Tax Disclosures In 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 becomes effective for the annual period starting on January 1, 2025. We are in the process of analyzing the impact that the adoption of ASU 2023-09 will have on our income tax disclosures. Summary of Significant Accounting Policies Our significant accounting policies are described in Note A, “Nature of Business and Accounting Policies,” in our 2023 Annual Report on Form 10-K.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets Subject to Fair Value Measurements

The following tables set forth our financial assets and liabilities subject to fair value measurements by level within the fair value hierarchy:


	As of March 31, 2024								As of December 31, 2023
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(in millions)
Financial instruments carried at fair value (asset positions):
Cash equivalents	$	5,865.3	$	4,921.3	$	944.0	$	—	$	7,033.9	$	5,397.3	$	1,636.6	$	—
Marketable securities:
Corporate equity securities	43.4		43.4		—		—		46.0		46.0		—		—
U.S. Treasury securities	1,389.4		1,389.4		—		—		546.5		546.5		—		—
U.S. government agency securities	356.7		—		356.7		—		425.2		—		425.2		—
Asset-backed securities	792.6		—		792.6		—		306.0		—		306.0		—
Certificates of deposit	42.6		—		42.6		—		33.7		—		33.7		—
Corporate debt securities	2,632.2		—		2,632.2		—		1,802.8		—		1,802.8		—
Commercial paper	137.8		—		137.8		—		186.8		—		186.8		—
Prepaid expenses and other current assets:
Foreign currency forward contracts	26.3		—		26.3		—		1.8		—		1.8		—


Total financial assets	$	11,286.3	$	6,354.1	$	4,932.2	$	—	$	10,382.7	$	5,989.8	$	4,392.9	$	—

Financial instruments carried at fair value (liability positions):
Other current liabilities:
Foreign currency forward contracts	$	(1.4)	$	—	$	(1.4)	$	—	$	(33.7)	$	—	$	(33.7)	$	—

Other long-term liabilities:

Contingent consideration	(77.3)		—		—		(77.3)		(77.4)		—		—		(77.4)
Total financial liabilities	$	(78.7)	$	—	$	(1.4)	$	(77.3)	$	(111.1)	$	—	$	(33.7)	$	(77.4)

Schedule of Fair Value of Our Contingent Consideration Liabilities

The following table represents a rollforward of the fair value of our contingent consideration liabilities:


	Three Months Ended March 31, 2024
	(in millions)
Balance at December 31, 2023	$	77.4
Decrease in fair value of contingent payments	(0.1)
Balance at March 31, 2024	$	77.3

Stock-based Compensation Expense and Share Repurchase Programs

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation Expense and Share Repurchase Programs

Stock-based compensation expense

During the three months ended March 31, 2024 and 2023, we recognized the following stock-based compensation expense:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Stock-based compensation expense by type of award:
Restricted stock units (including PSUs)		$	187.2	$	115.9
ESPP share issuances		5.8		5.5
Stock options		—		1.4
Stock-based compensation expense related to inventories		(1.1)		(0.4)
Total stock-based compensation expense included in “Total costs and expenses”		$	191.9	$	122.4

Stock-based compensation expense by line item:
Cost of sales		$	1.8	$	1.9
Research and development expenses		119.4		76.3
Selling, general and administrative expenses		70.7		44.2
Total stock-based compensation expense included in costs and expenses		191.9		122.4
Income tax effect		(79.0)		(40.6)
Total stock-based compensation expense, net of tax		$	112.9	$	81.8

Share repurchase program

In February 2023, our Board of Directors approved a share repurchase program, pursuant to which we are authorized to repurchase up to $3.0 billion of our common stock. The program does not have an expiration date and can be discontinued at any time. During the three months ended March 31, 2024 and 2023, we repurchased 335,773 and 459,017 shares of our common stock under the program, respectively, for aggregate repurchases of $140.4 million and $135.6 million, respectively. As of March 31, 2024, we had $2.4 billion remaining authorization under this program.

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 275.8	$ 170.3

Subsequent Events (Details) $ in Billions	1 Months Ended
Subsequent Events (Details) $ in Billions	Apr. 30, 2024 USD ($)
Subsequent Event \| Alpine
Subsequent Event [Line Items]
Payments to acquire business in cash	$ 4.9

Marketable Securities and Equity Investments - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Summary of cash, cash equivalents and marketable securities
Allowance for credit loss for available-for-sale debt securities	$ 0	$ 0
Realized gain (loss) amount	0	$ 0
Debt securities fair value, unrealized loss position	4,000,000,000
Unrealized loss	19,100,000
Fair value of available-for-sale debt securities in unrealized loss positions for greater than 12 months	53,800,000
Unrealized loss position for greater than twelve months	400,000
Reduction in carrying value of equity investments without readily determinable fair value, based on an observable price decrease	24,300,000
Other Assets
Summary of cash, cash equivalents and marketable securities
Equity securities without readily determinable fair value, amount	$ 74,300,000

Collaboration, License and Other Arrangements - Additional Information (Details)	1 Months Ended			3 Months Ended		12 Months Ended
	Jan. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2019 USD ($) target	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Acquired in-process research and development expenses				$ 76,800,000	$ 347,100,000
Cost of sales				342,600,000	266,900,000
Selling, general and administrative expenses				$ 342,700,000	241,100,000
CRISPR
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative arrangement, allocation of research and development expenses, percent				40.00%
Allocation of net profits and net losses, percent				40.00%
CRISPR Therapeutics
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative arrangement, right to exclusively license, number of targets \| target						3
Collaborative arrangement, development and regulatory potential milestone payments maximum						$ 410,000,000
CRISPR JDCA
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payment	$ 200,000,000
Allocation of net profits and net losses, percent							60.00%
Cost of sales				$ 15,800,000
Research and development expenses				11,700,000	17,900,000
Selling, general and administrative expenses					$ 5,800,000
CRISPR JDCA \| CRISPR
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Allocation of net profits and net losses, percent							40.00%
CRISPR T1D
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative arrangement, development and regulatory potential milestone payments maximum		$ 160,000,000
Up-front payment		$ 100,000,000
Entrada Therapeutics
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative arrangement, development and regulatory potential milestone payments maximum			$ 335,000,000
Milestone payment				$ 75,000,000
Up-front payment			225,100,000
Purchase of common stock			$ 24,900,000

Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories by Type

Inventories consisted of the following:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Raw materials	$	95.7	$	78.7
Work-in-process	601.8		525.1
Finished goods	115.6		135.0
Total	$	813.1	$	738.8

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

“Product revenues, net” consisted of the following:


	Three Months Ended March 31,
		2024		2023

		(in millions)
TRIKAFTA/KAFTRIO		$	2,483.6	$	2,096.7
Other CF products		207.0		278.1
Total product revenues, net		$	2,690.6	$	2,374.8

“Product revenues, net” by geographic region, based on the location of the customer, consisted of the following:


	Three Months Ended March 31,
		2024		2023

		(in millions)
United States		$	1,519.9	$	1,403.8
Outside of the United States
Europe		967.4		807.2
Other		203.3		163.8
Total product revenues outside of the United States		1,170.7		971.0
Total product revenues, net		$	2,690.6	$	2,374.8

Marketable Securities and Equity Investments - Available-for-Sale Debt Securities by Contractual Maturity (Details) - Total marketable available-for-sale debt securities - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Matures within one year	$ 969.9	$ 803.2
Matures after one year through five years	4,273.3	2,495.6
Matures after five years	108.1	2.2
Total	$ 5,351.3	$ 3,301.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Earnings Per Share - Schedule of Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share
Net income	$ 1,099.6	$ 699.8
Basic weighted-average common shares outstanding (in shares)	258.2	257.4
Effect of potentially dilutive securities:
Employee stock purchase program (in shares)	0.0	0.0
Diluted weighted-average common shares outstanding (in shares)	261.1	260.3
Basic net income per common share (in dollars per share)	$ 4.26	$ 2.72
Diluted net income per common share (in dollars per share)	$ 4.21	$ 2.69
Restricted stock units (including performance-based restricted stock units (“PSUs”))
Effect of potentially dilutive securities:
Share-based payment arrangements (in shares)	1.7	1.6
Stock options
Effect of potentially dilutive securities:
Share-based payment arrangements (in shares)	1.2	1.3

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component:


			Unrealized Holding Gains (Losses), Net of Tax
	Foreign Currency Translation Adjustment		On Available-For-Sale Debt Securities		On Foreign Currency Forward Contracts		Total

	(in millions)
Balance at December 31, 2023	$	1.1	$	9.6	$	(25.0)	$	(14.3)
Other comprehensive income (loss) before reclassifications	6.8		(20.5)		47.2		33.5
Amounts reclassified from accumulated other comprehensive income (loss)	—		0.8		(2.7)		(1.9)
Net current period other comprehensive income (loss)	6.8		(19.7)		44.5		31.6
Balance at March 31, 2024	$	7.9	$	(10.1)	$	19.5	$	17.3

Balance at December 31, 2022	$	(25.0)	$	(0.1)	$	25.9	$	0.8
Other comprehensive income (loss) before reclassifications	10.0		2.9		(9.6)		3.3
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(17.2)		(17.2)
Net current period other comprehensive income (loss)	10.0		2.9		(26.8)		(13.9)
Balance at March 31, 2023	$	(15.0)	$	2.8	$	(0.9)	$	(13.1)

Additional Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash Equivalents

The cash, cash equivalents and restricted cash at the beginning and ending of each period presented in our condensed consolidated statements of cash flows consisted of the following:


	Three Months Ended March 31,
	2024				2023
	Beginning of period		End of period		Beginning of period		End of period

	(in millions)
Cash and cash equivalents	$	10,369.1	$	9,158.0	$	10,504.0	$	9,289.9
Prepaid expenses and other current assets	3.2		11.4		8.0		5.7

Cash, cash equivalents and restricted cash per condensed consolidated statement of cash flows	$	10,372.3	$	9,169.4	$	10,512.0	$	9,295.6

Schedule of Restricted Cash

The cash, cash equivalents and restricted cash at the beginning and ending of each period presented in our condensed consolidated statements of cash flows consisted of the following:


	Three Months Ended March 31,
	2024				2023
	Beginning of period		End of period		Beginning of period		End of period

	(in millions)
Cash and cash equivalents	$	10,369.1	$	9,158.0	$	10,504.0	$	9,289.9
Prepaid expenses and other current assets	3.2		11.4		8.0		5.7

Cash, cash equivalents and restricted cash per condensed consolidated statement of cash flows	$	10,372.3	$	9,169.4	$	10,512.0	$	9,295.6

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income before provision for income taxes	$ 1,279.1	$ 891.5
Provision for income taxes	$ 179.5	$ 191.7
Effective tax rate	14.00%	21.50%
Net unrecognized tax benefits which would affect the tax rate if recognized	$ 301.6		$ 288.7

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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-Name Accounting Standards Codification
-Section S99
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-Publisher FASB
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-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 1,099.6	$ 699.8

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Fair Value Measurements - Additional Information (Details) $ in Millions	Mar. 31, 2024 USD ($)	Dec. 31, 2019 USD ($)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Remaining milestone payment		$ 678.3
Level 3 \| Minimum \| Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, measurement input (percent)	0.051
Level 3 \| Maximum \| Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, measurement input (percent)	0.053
Corporate equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of equity securities	$ 23.0

Basis of Presentation and Accounting Policies (Details)	3 Months Ended
Basis of Presentation and Accounting Policies (Details)	Mar. 31, 2024 segment
Accounting Policies [Abstract]
Number of operating segments	1

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 1,099.6	$ 699.8
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	191.9	122.4
Depreciation and amortization expense	53.5	38.8
Deferred income taxes	(158.3)	(113.4)
Losses (gains) on equity securities	27.0	(6.4)
Decrease in fair value of contingent consideration	(0.1)	(1.9)
Other non-cash items, net	(36.3)	21.7
Changes in operating assets and liabilities:
Accounts receivable, net	(251.6)	(90.5)
Inventories	(80.1)	(82.6)
Prepaid expenses and other assets	99.2	46.2
Accounts payable	0.1	35.7
Accrued expenses	194.1	140.7
Other liabilities	167.6	89.4
Net cash provided by operating activities	1,306.6	899.9
Cash flows from investing activities:
Purchases of available-for-sale debt securities	(2,598.5)	(1,816.6)
Sales and maturities of available-for-sale debt securities	710.5	50.0
Purchases of property and equipment	(68.4)	(42.1)
Net payments related to finite-lived intangible assets	(180.0)	0.0
Investment in equity securities	0.0	(24.9)
Net cash used in investing activities	(2,136.4)	(1,833.6)
Cash flows from financing activities:
Issuances of common stock under benefit plans	16.9	14.2
Repurchases of common stock	(131.2)	(132.8)
Payments in connection with common stock withheld for employee tax obligations	(233.5)	(166.6)
Payments on finance leases	(13.2)	(10.6)
Other financing activities	3.5	1.1
Net cash used in financing activities	(357.5)	(294.7)
Effect of changes in exchange rates on cash	(15.6)	12.0
Net decrease in cash, cash equivalents and restricted cash	(1,202.9)	(1,216.4)
Cash, cash equivalents and restricted cash—beginning of period	10,372.3	10,512.0
Cash, cash equivalents and restricted cash—end of period	9,169.4	9,295.6
Supplemental disclosure of cash flow information:
Cash paid for income taxes	34.8	120.3
Cash paid for interest	$ 10.0	$ 11.1

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 17,580.4	$ 13,912.7
Other comprehensive income (loss) before reclassifications	33.5	3.3
Amounts reclassified from accumulated other comprehensive income (loss)	(1.9)	(17.2)
Total other comprehensive income (loss)	31.6	(13.9)
Ending balance	18,546.6	14,432.3
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(14.3)	0.8
Total other comprehensive income (loss)	31.6	(13.9)
Ending balance	17.3	(13.1)
Foreign Currency Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	1.1	(25.0)
Other comprehensive income (loss) before reclassifications	6.8	10.0
Amounts reclassified from accumulated other comprehensive income (loss)	0.0	0.0
Total other comprehensive income (loss)	6.8	10.0
Ending balance	7.9	(15.0)
On Available-For-Sale Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	9.6	(0.1)
Other comprehensive income (loss) before reclassifications	(20.5)	2.9
Amounts reclassified from accumulated other comprehensive income (loss)	0.8	0.0
Total other comprehensive income (loss)	(19.7)	2.9
Ending balance	(10.1)	2.8
On Foreign Currency Forward Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(25.0)	25.9
Other comprehensive income (loss) before reclassifications	47.2	(9.6)
Amounts reclassified from accumulated other comprehensive income (loss)	(2.7)	(17.2)
Total other comprehensive income (loss)	44.5	(26.8)
Ending balance	$ 19.5	$ (0.9)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Topic 323
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+ Details

Stock-based Compensation Expense and Share Repurchase Programs - Stock-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	$ 191.9	$ 122.4
Stock-based compensation expense related to inventories	(1.1)	(0.4)
Total stock-based compensation expense included in “Total costs and expenses”	191.9	122.4
Income tax effect	(79.0)	(40.6)
Total stock-based compensation expense, net of tax	112.9	81.8
Cost of sales
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	1.8	1.9
Research and development expenses
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	119.4	76.3
Selling, general and administrative expenses
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	70.7	44.2
Restricted stock units (including performance-based restricted stock units (“PSUs”))
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	187.2	115.9
ESPP share issuances
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	5.8	5.5
Stock options
Stock-based compensation expense:
Total stock-based compensation expense included in costs and expenses	$ 0.0	$ 1.4

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	258,296,249	257,695,221
Common stock, shares outstanding (in shares)	258,296,249	257,695,221

Marketable Securities and Equity Investments - Net Unrealized Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Net unrealized (losses) gains	$ (2.7)	$ 6.4

Insider Trading Arrangements

3 Months Ended

Mar. 31, 2024

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

The following table describes the written plans for the sale of our securities adopted by our executive officers and directors during the first quarter of 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1 (each, a “Trading Plan”).

Name and Title

Date of Adoption of Trading Plan

Scheduled Expiration Date of Trading Plan (1)

Maximum Shares Subject to Trading Plan

E. Morrow "Morrey" Atkinson, III

EVP, Chief Technical Operations Officer, Head of Biopharmaceutical Sciences and Manufacturing Operations

2/22/2024

2/28/2025

25,290(2)

Jonathan Biller

EVP, Chief Legal Officer

2/13/2024

4/30/2025

9,825(2)

Carmen Bozic

EVP, Global Medicines Development and Medical Affairs, and Chief Medical Officer

2/27/2024

1/31/2025

13,680

Reshma Kewalramani

Chief Executive Officer and President

2/7/2024

5/20/2025

96,388(2)

Ourania "Nia" Tatsis

EVP, Chief Regulatory and Quality Officer

2/29/2024

5/1/2025

9,484(2)

Charles F. Wagner, Jr.

EVP, Chief Financial Officer

2/26/2024

1/31/2025

6,500

Bruce Sachs

Director

2/12/2024

2/28/2025

12,368

(1) A Trading Plan may expire on an earlier date if all contemplated transactions are completed before such Trading Plan’s expiration date, upon termination by broker or the holder of the Trading Plan, or as otherwise provided in the Trading Plan.
(2) The maximum shares listed has not been reduced by the number of shares of common stock that will be withheld to satisfy tax withholding obligations at future vesting dates because such number of shares is not yet determinable.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

E. Morrow "Morrey" Atkinson III [Member]

Trading Arrangements, by Individual

Name

E. Morrow "Morrey" Atkinson, III

Title

EVP, Chief Technical Operations Officer, Head of Biopharmaceutical Sciences and Manufacturing Operations

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/22/2024

Arrangement Duration

372 days

Aggregate Available

25,290

Jonathan Biller [Member]

Trading Arrangements, by Individual

Name

Jonathan Biller

Title

EVP, Chief Legal Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/13/2024

Arrangement Duration

442 days

Aggregate Available

9,825

Carmen Bozic [Member]

Trading Arrangements, by Individual

Name

Carmen Bozic

Title

EVP, Global Medicines Development and Medical Affairs, and Chief Medical Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/27/2024

Arrangement Duration

339 days

Aggregate Available

13,680

Reshma Kewalramani [Member]

Trading Arrangements, by Individual

Name

Reshma Kewalramani

Title

Chief Executive Officer and President

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/7/2024

Arrangement Duration

468 days

Aggregate Available

96,388

Ourania "Nia" Tatsis [Member]

Trading Arrangements, by Individual

Name

Ourania "Nia" Tatsis

Title

EVP, Chief Regulatory and Quality Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/29/2024

Arrangement Duration

427 days

Aggregate Available

9,484

Charles F. Wagner, Jr. [Member]

Trading Arrangements, by Individual

Name

Charles F. Wagner, Jr.

Title

EVP, Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

2/26/2024

340 days

6,500

Trading Arrangements, by Individual

Name

Bruce Sachs

Title

Director

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

2/12/2024

Arrangement Duration

382 days

Aggregate Available

12,368

Stock-based Compensation Expense and Share Repurchase Programs - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Feb. 28, 2023
Share-Based Payment Arrangement [Abstract]
Number of shares authorized to be repurchased			$ 3,000,000,000
Shares repurchased (in shares)	335,773	459,017
Value of shares repurchased	$ 140,400,000	$ 135,600,000
Stock repurchase program, remaining amount	$ 2,400,000,000

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 9,158.0	$ 10,369.1
Marketable securities	1,013.3	849.2
Accounts receivable, net	1,793.2	1,563.4
Inventories	813.1	738.8
Prepaid expenses and other current assets	511.1	623.7
Total current assets	13,288.7	14,144.2
Property and equipment, net	1,172.8	1,159.3
Goodwill	1,088.0	1,088.0
Other intangible assets, net	834.9	839.9
Deferred tax assets	1,963.0	1,812.1
Operating lease assets	312.9	293.6
Long-term marketable securities	4,381.4	2,497.8
Other assets	875.7	895.3
Total assets	23,917.4	22,730.2
Current liabilities:
Accounts payable	351.4	364.9
Accrued expenses	2,795.9	2,655.3
Other current liabilities	648.6	527.2
Total current liabilities	3,795.9	3,547.4
Long-term finance lease liabilities	361.5	376.1
Long-term operating lease liabilities	359.8	348.6
Other long-term liabilities	853.6	877.7
Total liabilities	5,370.8	5,149.8
Commitments and contingencies	0.0	0.0
Shareholders’ equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued and outstanding	0.0	0.0
Common stock, $0.01 par value; 500,000,000 shares authorized, 258,296,249 and 257,695,221 shares issued and outstanding, respectively	2.6	2.6
Additional paid-in capital	7,284.7	7,449.7
Accumulated other comprehensive income (loss)	17.3	(14.3)
Retained earnings	11,242.0	10,142.4
Total shareholders’ equity	18,546.6	17,580.4
Total liabilities and shareholders’ equity	$ 23,917.4	$ 22,730.2

Fair Value Measurements - Financial Assets and Liabilities Subject to Fair Value Measurements (Details) - Recurring Basis - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Financial instruments carried at fair value (asset positions):
Cash equivalents	$ 5,865.3	$ 7,033.9
Prepaid expenses and other current assets, foreign currency forward contracts	26.3	1.8
Total financial assets	11,286.3	10,382.7
Financial instruments carried at fair value (liability positions):
Other current liabilities, foreign currency forward contracts	(1.4)	(33.7)
Contingent consideration	(77.3)	(77.4)
Total financial liabilities	(78.7)	(111.1)
Level 1
Financial instruments carried at fair value (asset positions):
Cash equivalents	4,921.3	5,397.3
Prepaid expenses and other current assets, foreign currency forward contracts	0.0	0.0
Total financial assets	6,354.1	5,989.8
Financial instruments carried at fair value (liability positions):
Other current liabilities, foreign currency forward contracts	0.0	0.0
Contingent consideration	0.0	0.0
Total financial liabilities	0.0	0.0
Level 2
Financial instruments carried at fair value (asset positions):
Cash equivalents	944.0	1,636.6
Prepaid expenses and other current assets, foreign currency forward contracts	26.3	1.8
Total financial assets	4,932.2	4,392.9
Financial instruments carried at fair value (liability positions):
Other current liabilities, foreign currency forward contracts	(1.4)	(33.7)
Contingent consideration	0.0	0.0
Total financial liabilities	(1.4)	(33.7)
Level 3
Financial instruments carried at fair value (asset positions):
Cash equivalents	0.0	0.0
Prepaid expenses and other current assets, foreign currency forward contracts	0.0	0.0
Total financial assets	0.0	0.0
Financial instruments carried at fair value (liability positions):
Other current liabilities, foreign currency forward contracts	0.0	0.0
Contingent consideration	(77.3)	(77.4)
Total financial liabilities	(77.3)	(77.4)
Corporate equity securities
Financial instruments carried at fair value (asset positions):
Marketable securities:	43.4	46.0
Corporate equity securities \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	43.4	46.0
Corporate equity securities \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Corporate equity securities \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
U.S. Treasury securities
Financial instruments carried at fair value (asset positions):
Marketable securities:	1,389.4	546.5
U.S. Treasury securities \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	1,389.4	546.5
U.S. Treasury securities \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
U.S. Treasury securities \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
U.S. government agency securities
Financial instruments carried at fair value (asset positions):
Marketable securities:	356.7	425.2
U.S. government agency securities \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
U.S. government agency securities \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	356.7	425.2
U.S. government agency securities \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Asset-backed securities
Financial instruments carried at fair value (asset positions):
Marketable securities:	792.6	306.0
Asset-backed securities \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Asset-backed securities \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	792.6	306.0
Asset-backed securities \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Certificates of deposit
Financial instruments carried at fair value (asset positions):
Marketable securities:	42.6	33.7
Certificates of deposit \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Certificates of deposit \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	42.6	33.7
Certificates of deposit \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Corporate debt securities
Financial instruments carried at fair value (asset positions):
Marketable securities:	2,632.2	1,802.8
Corporate debt securities \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Corporate debt securities \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	2,632.2	1,802.8
Corporate debt securities \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Commercial paper
Financial instruments carried at fair value (asset positions):
Marketable securities:	137.8	186.8
Commercial paper \| Level 1
Financial instruments carried at fair value (asset positions):
Marketable securities:	0.0	0.0
Commercial paper \| Level 2
Financial instruments carried at fair value (asset positions):
Marketable securities:	137.8	186.8
Commercial paper \| Level 3
Financial instruments carried at fair value (asset positions):
Marketable securities:	$ 0.0	$ 0.0

Collaboration, License and Other Arrangements	3 Months Ended
Collaboration, License and Other Arrangements	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration, License and Other Arrangements	Collaboration, License and Other Arrangements We have entered into numerous agreements with third parties to collaborate on research, development and commercialization programs, license technologies, or acquire assets. Our “Acquired in-process research and development expenses” included $76.8 million and $347.1 million for the three months ended March 31, 2024 and 2023, respectively, related to upfront, contingent milestone, or other payments pursuant to our business development transactions, including collaborations, licenses of third-party technologies, and asset acquisitions that qualify as in-process research and development. Our collaboration, licensing and asset acquisition agreements that had a significant impact on our financial statements for the three months ended March 31, 2024 and 2023, or were new or materially revised during the three months ended March 31, 2024, are described below. Additional agreements were described in Note B, “Collaboration, License and Other Arrangements,” of our 2023 Annual Report on Form 10-K. In-license Agreements CRISPR Therapeutics AG CRISPR-Cas9 Gene-editing Therapies Agreements In 2015, we entered into a strategic collaboration, option, and license agreement (the “CRISPR Agreement”) with CRISPR Therapeutics AG and its affiliates (“CRISPR”) to collaborate on the discovery and development of potential new treatments aimed at the underlying genetic causes of human diseases using CRISPR-Cas9 gene-editing technology. We had the exclusive right to license certain targets. In 2019, we elected to exclusively license three targets, including CF, pursuant to the CRISPR Agreement. For each of the three targets that we elected to license, CRISPR has the potential to receive up to an additional $410.0 million in development, regulatory and commercial milestones as well as royalties on resulting net product sales. In 2017, we entered into a joint development and commercialization agreement with CRISPR (the “CRISPR JDCA”), which we amended and restated in 2021, pursuant to the terms of the CRISPR Agreement. Under the CRISPR JDCA, we and CRISPR were co-developing and preparing to co-commercialize CASGEVY for the treatment of hemoglobinopathies, including treatments for severe sickle cell disease (“SCD”) and transfusion-dependent beta thalassemia. Pursuant to the CRISPR JDCA, we lead global development, manufacturing and commercialization of CASGEVY, with support from CRISPR. We also conduct all research, development, manufacturing, and commercialization activities relating to other product candidates and products under the CRISPR JDCA throughout the world subject to CRISPR’s reserved right to conduct certain activities. CASGEVY was approved by the U.S. Food and Drug Administration in December 2023 for the treatment of SCD. In connection with this approval, we made a $200.0 million milestone payment to CRISPR in January 2024, which we accrued to “Other current liabilities” and recorded within “Other intangible assets, net” on our consolidated balance sheet as of December 31, 2023. Subsequent to receiving marketing approval for CASGEVY, we continue to lead the research and development activities under the CRISPR JDCA, subject to CRISPR’s reserved right to conduct certain activities. We are reimbursed by CRISPR for its 40% share of these research and development activities, subject to certain adjustments, and we record this reimbursement from CRISPR as a credit within “Research and development expenses.” We also share with CRISPR 40% of the net commercial profits or losses incurred with respect to CASGEVY, subject to certain adjustments, which is recorded to “Cost of sales.” The net commercial profits or losses equal the sum of the product revenues, cost of sales and selling, general and administrative expenses that we have recognized related to the CRISPR JDCA. In the three months ended March 31, 2024, we recognized net reimbursements from CRISPR pursuant to the CRISPR JDCA as credits to “Cost of sales” of $15.8 million, related to CRISPR’s share of the CRISPR JDCA’s net commercial loss, and to “Research and development expenses” of $11.7 million, related to CRISPR’s share of the CRISPR JDCA’s research and development activities. Prior to receiving marketing approvals for CASGEVY in various markets beginning in December 2023, we accounted for the CRISPR JDCA as a cost-sharing arrangement, with costs incurred related to CASGEVY allocated 60% to us and 40% to CRISPR, subject to certain adjustments. In the three months ended March 31, 2023, we recognized net reimbursements from CRISPR as credits to “Research and development expenses” of $17.9 million and to “Selling, general and administrative expenses” of $5.8 million, related to CRISPR’s share of the CRISPR JDCA’s operating expenses. CRISPR-Cas9 Gene-editing Hypoimmune Cell Therapies Agreement In March 2023, we entered into a non-exclusive license agreement (the “CRISPR T1D Agreement”) for the use of CRISPR’s CRISPR-Cas9 gene-editing technology to accelerate the development of our hypoimmune cell therapies for type 1 diabetes (“T1D”). Pursuant to the CRISPR T1D Agreement, we made a $100.0 million upfront payment to CRISPR, and we determined that substantially all the fair value of our upfront payment was attributable to in-process research and development, for which there is no alternative future use, and that no substantive processes were acquired that would constitute a business. CRISPR is eligible to receive up to an additional $160.0 million in research, development, regulatory and commercial milestones for any products that may result from the agreement, as well as royalties on resulting net product sales. Entrada Therapeutics, Inc. In February 2023, we closed a strategic collaboration and license agreement (the “Entrada Agreement”) with Entrada Therapeutics, Inc. (“Entrada”) focused on discovering and developing intracellular therapeutics for myotonic dystrophy type 1 (“DM1”). Upon closing, we made an upfront payment of $225.1 million to Entrada, and purchased $24.9 million of Entrada’s common stock in connection with the Entrada Agreement. We determined that substantially all the fair value of our upfront payment was attributable to in-process research and development, for which there is no alternative future use, and that no substantive processes were acquired that would constitute a business. We recorded the upfront payment to “Acquired in-process research and development expenses” in the three months ended March 31, 2023. We recorded the investment in Entrada’s common stock at fair value on our condensed consolidated balance sheet within “Marketable securities.” In the first quarter of 2024, Entrada earned a $75.0 million milestone, which we recorded to “Acquired in-process research and development expenses” in the three months ended March 31, 2024 and accrued to “Other current liabilities” as of March 31, 2024. Entrada is eligible to receive up to an additional $335.0 million in development, regulatory and commercial milestones for any products that may result from the Entrada Agreement, as well as royalties on resulting net product sales. Cystic Fibrosis Foundation In 2004, we entered into a collaboration agreement with the Cystic Fibrosis Foundation, as successor in interest to the Cystic Fibrosis Foundation Therapeutics, Inc., to support research and development activities. Pursuant to the collaboration agreement, as amended, we have agreed to pay tiered royalties ranging from single digits to sub-teens on covered compounds first synthesized and/or tested during a research term on or before February 28, 2014, including ivacaftor, lumacaftor and tezacaftor and royalties ranging from low-single digits to mid-single digits on potential net sales of certain compounds first synthesized and/or tested between March 1, 2014 and August 31, 2016, including elexacaftor. We do not have any royalty obligations on compounds first synthesized and tested on or after September 1, 2016. For combination products, such as ORKAMBI, SYMDEKO/SYMKEVI and TRIKAFTA/KAFTRIO, sales are allocated equally to each of the active pharmaceutical ingredients in the combination product. We record expenses related to these royalty obligations to “Cost of sales.”

Hedging

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging

Foreign currency forward contracts - Designated as hedging instruments

We maintain a hedging program intended to mitigate the effect of changes in foreign exchange rates for a portion of our forecasted product revenues denominated in certain foreign currencies. The program includes foreign currency forward contracts that are designated as cash flow hedges under U.S. GAAP having contractual durations from one to eighteen months. We recognize realized gains and losses for the effective portion of such contracts in “Product revenues, net” in our condensed consolidated statements of income in the same period that we recognize the product revenues that were impacted by the hedged foreign exchange rate changes.

We formally document the relationship between foreign currency forward contracts (hedging instruments) and forecasted product revenues (hedged items), as well as our risk management objective and strategy for undertaking various hedging activities, which includes matching all foreign currency forward contracts that are designated as cash flow hedges to forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we were to determine that a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward contracts and the fair value of the hypothetical foreign currency forward contracts with terms that match the critical terms of the risk being hedged. As of March 31, 2024, all hedges were determined to be highly effective.

We consider the impact of our counterparties’ credit risk on the fair value of the foreign currency forward contracts. As of March 31, 2024 and December 31, 2023, credit risk did not change the fair value of our foreign currency forward contracts.

The following table summarizes the notional amount in U.S. dollars of our outstanding foreign currency forward contracts designated as cash flow hedges under U.S. GAAP:


	As of March 31, 2024		As of December 31, 2023

Foreign Currency	(in millions)
Euro	$	1,305.5	$	1,720.6
Canadian dollar	190.0		229.5
British pound sterling	186.4		225.0
Australian dollar	122.1		153.3
Swiss Franc	50.5		63.9
Total foreign currency forward contracts	$	1,854.5	$	2,392.3

Foreign currency forward contracts - Not designated as hedging instruments

We also enter into foreign currency forward contracts with contractual maturities of less than one month, which are designed to mitigate the effect of changes in foreign exchange rates on monetary assets and liabilities, including intercompany balances. These contracts are not designated as hedging instruments under U.S. GAAP. We recognize realized gains and losses for such contracts in “Other (expense) income, net” in our condensed consolidated statements of income each period. As of March 31, 2024, we did not have any outstanding foreign currency forward contracts where hedge accounting under U.S. GAAP was not applied.

During the three months ended March 31, 2024 and 2023, we recognized the following related to foreign currency forward contracts in our condensed consolidated statements of income:


	Three Months Ended March 31,
		2024		2023

		(in millions)
Designated as hedging instruments - Reclassified from AOCI
Product revenues, net		$	3.4	$	22.0
Not designated as hedging instruments
Other (expense) income, net		$	(2.4)	$	3.6

Total reported in the Condensed Consolidated Statements of Income
Product revenues, net		$	2,690.6	$	2,374.8
Other (expense) income, net		$	(31.2)	$	1.3

As of March 31, 2024

Assets

Liabilities

Classification

Fair Value

Classification

Fair Value

(in millions)

Prepaid expenses and other current assets

26.3

Other current liabilities

(1.4)

As of December 31, 2023

Assets

Liabilities

Classification

Fair Value

Classification

Fair Value

(in millions)

Prepaid expenses and other current assets

1.8

Other current liabilities

(33.7)

As of March 31, 2024, we expect the amounts that are related to foreign exchange forward contracts designated as cash flow hedges under U.S. GAAP recorded in “Prepaid expenses and other current assets” and “Other current liabilities” to be reclassified to earnings within twelve months.

We present the fair value of our foreign currency forward contracts on a gross basis within our condensed consolidated balance sheets. The following table summarizes the potential effect of offsetting derivatives by type of financial instrument designated as cash flow hedges under U.S. GAAP on our condensed consolidated balance sheets:


	As of March 31, 2024
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	26.3	$	—	$	26.3	$	(1.4)	$	24.9
Total liabilities	(1.4)		—		(1.4)		1.4		—


	As of December 31, 2023
	Gross Amounts Recognized		Gross Amounts Offset		Gross Amounts Presented		Gross Amounts Not Offset		Legal Offset

Foreign currency forward contracts	(in millions)
Total assets	$	1.8	$	—	$	1.8	$	(1.8)	$	—
Total liabilities	(33.7)		—		(33.7)		1.8		(31.9)

Marketable Securities and Equity Investments - Summary of Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Cash equivalents
Amortized Cost	$ 5,865.3	$ 7,033.9
Fair Value	5,865.3	7,033.9
Total marketable available-for-sale debt securities
Gross Unrealized Losses	(19.1)
Corporate equity securities
Amortized Cost	72.1	72.1
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	(28.7)	(26.1)
Fair Value	43.4	46.0
Amortized Cost	5,436.3	3,360.8
Gross Unrealized Gains	6.2	15.9
Gross Unrealized Losses	(47.8)	(29.7)
Fair Value	5,394.7	3,347.0
Total cash equivalents and marketable securities, Amortized Cost	11,301.6	10,394.7
Total cash equivalents and marketable securities, Gross Unrealized Gains	6.2	15.9
Total cash equivalents and marketable securities, Gross Unrealized Losses	(47.8)	(29.7)
Total cash equivalents and marketable securities, Fair Value	11,260.0	10,380.9
U.S. Treasury securities
Total marketable available-for-sale debt securities
Amortized Cost	1,395.1	544.5
Gross Unrealized Gains	1.1	3.0
Gross Unrealized Losses	(6.8)	(1.0)
Fair Value	1,389.4	546.5
U.S. government agency securities
Total marketable available-for-sale debt securities
Amortized Cost	357.7	424.8
Gross Unrealized Gains	0.1	0.9
Gross Unrealized Losses	(1.1)	(0.5)
Fair Value	356.7	425.2
Asset-backed securities
Total marketable available-for-sale debt securities
Amortized Cost	793.5	304.9
Gross Unrealized Gains	0.7	1.4
Gross Unrealized Losses	(1.6)	(0.3)
Fair Value	792.6	306.0
Certificates of deposit
Total marketable available-for-sale debt securities
Amortized Cost	42.6	33.7
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	(0.0)	(0.0)
Fair Value	42.6	33.7
Corporate debt securities
Total marketable available-for-sale debt securities
Amortized Cost	2,637.4	1,794.0
Gross Unrealized Gains	4.3	10.5
Gross Unrealized Losses	(9.5)	(1.7)
Fair Value	2,632.2	1,802.8
Commercial paper
Total marketable available-for-sale debt securities
Amortized Cost	137.9	186.8
Gross Unrealized Gains	0.0	0.1
Gross Unrealized Losses	(0.1)	(0.1)
Fair Value	137.8	186.8
Total marketable available-for-sale debt securities
Total marketable available-for-sale debt securities
Amortized Cost	5,364.2	3,288.7
Gross Unrealized Gains	6.2	15.9
Gross Unrealized Losses	(19.1)	(3.6)
Fair Value	$ 5,351.3	$ 3,301.0

Marketable Securities and Equity Investments - Available-for-Sale Debt Securities at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Total cash equivalents and marketable securities, Fair Value	$ 11,260.0	$ 10,380.9
Cash and cash equivalents
Debt Securities, Available-for-sale [Line Items]
Total cash equivalents and marketable securities, Fair Value	5,865.3	7,033.9
Marketable securities
Debt Securities, Available-for-sale [Line Items]
Total cash equivalents and marketable securities, Fair Value	1,013.3	849.2
Long-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Total cash equivalents and marketable securities, Fair Value	$ 4,381.4	$ 2,497.8

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Hedging - Offsetting Derivatives (Details) - Cash Flow Hedging - Designated as Hedging Instruments - Foreign currency forward contracts - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Total assets
Gross Amounts Recognized	$ 26.3	$ 1.8
Gross Amounts Offset	0.0	0.0
Gross Amounts Presented	26.3	1.8
Gross Amounts Not Offset	(1.4)	(1.8)
Legal Offset	24.9	0.0
Total liabilities
Gross Amounts Recognized	(1.4)	(33.7)
Gross Amounts Offset	0.0	0.0
Gross Amounts Presented	(1.4)	(33.7)
Gross Amounts Not Offset	1.4	1.8
Legal Offset	$ 0.0	$ (31.9)

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Common Share

The following table sets forth the computation of basic and diluted net income per common share for the periods ended:


	Three Months Ended March 31,
		2024		2023

		(in millions, except per share amounts)
Net income		$	1,099.6	$	699.8

Basic weighted-average common shares outstanding		258.2		257.4
Effect of potentially dilutive securities:
Restricted stock units (including performance-based restricted stock units (“PSUs”))		1.7		1.6
Stock options		1.2		1.3
Employee stock purchase program		0.0		0.0
Diluted weighted-average common shares outstanding		261.1		260.3

Basic net income per common share		$	4.26	$	2.72
Diluted net income per common share		$	4.21	$	2.69

Schedule of Potential Gross Common Equivalent Shares

We did not include the securities in the following table in the computation of the diluted net income per common share because the effect would have been anti-dilutive during each period:


	Three Months Ended March 31,
		2024	2023

		(in millions)
Unvested restricted stock units (including PSUs)		—	0.6

Hedging - Additional Information (Details) - Foreign currency forward contracts	3 Months Ended
	Mar. 31, 2024 USD ($)
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative term	1 month
Cash Flow Hedging \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount of foreign currency forward contract	$ 0
Cash Flow Hedging \| Minimum
Derivative [Line Items]
Derivative term	1 month
Cash Flow Hedging \| Maximum
Derivative [Line Items]
Derivative term	18 months

Additional Cash Flow Information

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Cash Flow Information

The cash, cash equivalents and restricted cash at the beginning and ending of each period presented in our condensed consolidated statements of cash flows consisted of the following:


	Three Months Ended March 31,
	2024				2023
	Beginning of period		End of period		Beginning of period		End of period

	(in millions)
Cash and cash equivalents	$	10,369.1	$	9,158.0	$	10,504.0	$	9,289.9
Prepaid expenses and other current assets	3.2		11.4		8.0		5.7

Cash, cash equivalents and restricted cash per condensed consolidated statement of cash flows	$	10,372.3	$	9,169.4	$	10,512.0	$	9,295.6

Fair Value Measurements - Schedule of Fair Value of Our Contingent Consideration Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 77.4
Decrease in fair value of contingent payments	(0.1)	$ (1.9)
Ending balance	$ 77.3

Inventories

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following:


	As of March 31, 2024		As of December 31, 2023

	(in millions)
Raw materials	$	95.7	$	78.7
Work-in-process	601.8		525.1
Finished goods	115.6		135.0
Total	$	813.1	$	738.8

During the first quarter of 2024, following positive results we announced related to our two Phase 3 trials for suzetrigine (formerly VX-548) for acute pain and vanzacaftor/tezacaftor/deutivacaftor for CF, we began capitalizing inventories produced in preparation for our planned product launches. We made these determinations based on our evaluation, among other factors, the safety and efficacy results, and expected likelihood of regulatory approval and commercial success. Prior to the first quarter of 2024, we expensed inventoriable and related costs associated with these product candidates as “Research and development expenses.” As of March 31, 2024, these inventories were not material to our condensed consolidated financial statements.

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision for (Benefits from) Income Taxes and Effective Tax rates

During the three months ended March 31, 2024 and 2023, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes:


	Three Months Ended March 31,
		2024		2023

		(in millions, except percentages)
Income before provision for income taxes		$	1,279.1	$	891.5
Provision for income taxes		$	179.5	$	191.7


Effective tax rate															14.0		%				21.5		%

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following fair value hierarchy is used to classify assets and liabilities based on observable inputs and unobservable inputs used to determine the fair value of our financial assets and liabilities:


Level 1:			Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2:			Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3:			Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The following tables set forth our financial assets and liabilities subject to fair value measurements by level within the fair value hierarchy:


	As of March 31, 2024								As of December 31, 2023
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3

	(in millions)
Financial instruments carried at fair value (asset positions):
Cash equivalents	$	5,865.3	$	4,921.3	$	944.0	$	—	$	7,033.9	$	5,397.3	$	1,636.6	$	—
Marketable securities:
Corporate equity securities	43.4		43.4		—		—		46.0		46.0		—		—
U.S. Treasury securities	1,389.4		1,389.4		—		—		546.5		546.5		—		—
U.S. government agency securities	356.7		—		356.7		—		425.2		—		425.2		—
Asset-backed securities	792.6		—		792.6		—		306.0		—		306.0		—
Certificates of deposit	42.6		—		42.6		—		33.7		—		33.7		—
Corporate debt securities	2,632.2		—		2,632.2		—		1,802.8		—		1,802.8		—
Commercial paper	137.8		—		137.8		—		186.8		—		186.8		—
Prepaid expenses and other current assets:
Foreign currency forward contracts	26.3		—		26.3		—		1.8		—		1.8		—


Total financial assets	$	11,286.3	$	6,354.1	$	4,932.2	$	—	$	10,382.7	$	5,989.8	$	4,392.9	$	—

Financial instruments carried at fair value (liability positions):
Other current liabilities:
Foreign currency forward contracts	$	(1.4)	$	—	$	(1.4)	$	—	$	(33.7)	$	—	$	(33.7)	$	—

Other long-term liabilities:

Contingent consideration	(77.3)		—		—		(77.3)		(77.4)		—		—		(77.4)
Total financial liabilities	$	(78.7)	$	—	$	(1.4)	$	(77.3)	$	(111.1)	$	—	$	(33.7)	$	(77.4)

Please refer to Note F, “Marketable Securities and Equity Investments,” for the carrying amount and related unrealized gains (losses) by type of investment. Our cash equivalents primarily include money market funds and time deposits.

Fair Value of Corporate Equity Securities

We classify our investments in publicly traded corporate equity securities as “Marketable securities” on our condensed consolidated balance sheets. Generally, our investments in the common stock of publicly traded companies are valued based

on Level 1 inputs because they have readily determinable fair values. However, certain of our investments in publicly traded companies have been or continue to be valued based on Level 2 inputs due to transfer restrictions associated with these investments.

As of March 31, 2024, one of our investments in publicly traded corporate equity securities was subject to a contractual sales restriction expiring partially in 2024 and partially in 2025 with a total fair value of $23.0 million. We purchased this investment directly from the publicly traded company in the first quarter of 2023, and do not anticipate any circumstances that would cause this restriction to lapse prior to the periods listed above.

Please refer to Note F, “Marketable Securities and Equity Investments,” for further information on these investments.

Fair Value of Contingent Consideration

In 2019, we acquired Exonics Therapeutics, Inc. (“Exonics”), a privately-held company focused on creating transformative gene-editing therapies to repair mutations that cause Duchenne muscular dystrophy (“DMD”) and other severe neuromuscular diseases, including DM1. Our Level 3 contingent consideration liabilities are related to $678.3 million of development and regulatory milestones potentially payable to former Exonics equity holders. We base our estimates of the probability of achieving the milestones relevant to the fair value of contingent payments on industry data attributable to gene therapies and our knowledge of the progress and viability of the programs. The discount rates used in the valuation model for contingent payments, which were between 5.1% and 5.3% as of March 31, 2024, represent a measure of credit risk and market risk associated with settling the liabilities. Significant judgment is used in determining the appropriateness of these assumptions at each reporting period.

The following table represents a rollforward of the fair value of our contingent consideration liabilities:


	Three Months Ended March 31, 2024
	(in millions)
Balance at December 31, 2023	$	77.4
Decrease in fair value of contingent payments	(0.1)
Balance at March 31, 2024	$	77.3

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	000-19319
Entity Registrant Name	VERTEX PHARMACEUTICALS INC / MA
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-3039129
Entity Address, Address Line One	50 Northern Avenue
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02210
City Area Code	617
Local Phone Number	341-6100
Title of 12(b) Security	Common Stock, $0.01 Par Value Per Share
Trading Symbol	VRTX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		258,053,387
Entity Central Index Key	0000875320
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Hedging - Derivative Fair Value (Details) - Designated as Hedging Instruments - Foreign currency forward contracts - Cash Flow Hedging - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Total assets	$ 26.3	$ 1.8
Total liabilities	(1.4)	(33.7)
Prepaid expenses and other current assets
Derivative [Line Items]
Total assets	26.3	1.8
Other current liabilities
Derivative [Line Items]
Total liabilities	$ (1.4)	$ (33.7)

Additional Cash Flow Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 9,158.0	$ 10,369.1	$ 9,289.9	$ 10,504.0
Prepaid expenses and other current assets	11.4	3.2	5.7	8.0
Cash, cash equivalents and restricted cash per condensed consolidated statement of cash flows	$ 9,169.4	$ 10,372.3	$ 9,295.6	$ 10,512.0