Summary
Vertex Pharmaceuticals Inc. reported a net loss of $162.7 million for the first quarter of 2009, a significant increase from the $96.2 million net loss in the same period of 2008. This widening loss was driven by a 42% decline in total revenues to $24.0 million and a 32% increase in total costs and expenses to $185.9 million. The increased expenses are attributed to higher research and development spending, particularly for the telaprevir program, increased stock-based compensation, restructuring costs, and acquisition-related expenses from the recent acquisition of ViroChem Pharma Inc. Despite the increased loss, the company bolstered its cash position to $602.2 million due to a successful equity offering in February 2009, which brought in $313.3 million in net proceeds. The company's primary focus remains on the development of telaprevir for Hepatitis C, with its Phase 3 trials progressing as planned and an anticipated NDA filing in the second half of 2010. Vertex is also advancing its cystic fibrosis drug candidate, VX-770, and has strategically acquired ViroChem to enhance its HCV pipeline. Management believes its current cash and cash equivalents are sufficient to fund operations for at least the next twelve months, but acknowledges the need for additional capital to fund future development and commercialization efforts.
Financial Highlights
24 data points| Revenue | $23.98M |
| R&D Expenses | $143.58M |
| SG&A Expenses | $28.52M |
| Operating Expenses | $185.87M |
| Operating Income | -$161.89M |
| Interest Expense | $3.38M |
| Net Income | -$162.67M |
| EPS (Basic) | $-1.04 |
| EPS (Diluted) | $-1.04 |
| Shares Outstanding (Basic) | 155.86M |
| Shares Outstanding (Diluted) | 155.86M |
Key Highlights
- 1Net loss widened to $162.7 million in Q1 2009 from $96.2 million in Q1 2008.
- 2Total revenues decreased by 42% to $24.0 million in Q1 2009.
- 3Total costs and expenses increased by 32% to $185.9 million in Q1 2009.
- 4Research and Development expenses increased by 23% to $143.6 million, driven by the telaprevir program.
- 5Acquired ViroChem Pharma Inc. in March 2009 for $100 million cash and company stock, adding HCV polymerase inhibitors to the pipeline.
- 6Cash, cash equivalents, and marketable securities increased to $869.2 million as of March 31, 2009, largely due to a February 2009 equity offering that raised $313.3 million net proceeds.
- 7Anticipates filing an NDA for telaprevir in the second half of 2010, assuming successful completion of its registration program.