Summary
Vertex Pharmaceuticals Incorporated (VRTX) reported its financial results for the quarter and six months ended June 30, 2012. The company experienced a significant increase in total revenues, primarily driven by the strong performance of its key products INCIVEK and KALYDECO, which launched in May 2011 and January 2012, respectively. Despite the revenue growth, Vertex reported a net loss attributable to Vertex of $64.9 million for the quarter, compared to a net loss of $174.1 million in the prior year period. This was largely due to a substantial inventory write-down for INCIVEK ($78.0 million) and an increase in the fair value of contingent liabilities related to the Alios collaboration ($56.2 million). For the six-month period, Vertex reported a net income of $26.7 million, a significant improvement from the net loss of $350.2 million in the comparable period of 2011. The company's liquidity remains strong, with $1.2 billion in cash, cash equivalents, and marketable securities as of June 30, 2012, providing sufficient resources to fund operations and ongoing research and development efforts.
Financial Highlights
49 data points| Revenue | $418.31M |
| Cost of Revenue | $104.55M |
| Gross Profit | $313.76M |
| R&D Expenses | $196.54M |
| SG&A Expenses | $117.51M |
| Operating Expenses | $429.07M |
| Operating Income | -$10.77M |
| Interest Expense | -$179K |
| Net Income | -$64.93M |
| EPS (Basic) | $-0.31 |
| EPS (Diluted) | $-0.31 |
| Shares Outstanding (Basic) | 211.34M |
| Shares Outstanding (Diluted) | 211.34M |
Key Highlights
- 1Total revenues surged by 266% to $418.3 million for the quarter ended June 30, 2012, driven by product revenues from INCIVEK and the newly launched KALYDECO.
- 2Despite revenue growth, Vertex reported a net loss of $64.9 million for the quarter, primarily impacted by a $78.0 million charge for excess and obsolete INCIVEK inventory and a $56.2 million increase in the fair value of Alios collaboration liabilities.
- 3For the six months ended June 30, 2012, Vertex reported a net income of $26.7 million, a substantial turnaround from a net loss of $350.2 million in the same period last year.
- 4Product revenues increased dramatically to $373.3 million for the quarter, with INCIVEK and KALYDECO contributing $327.7 million and $45.5 million, respectively.
- 5Research and development expenses increased by 13% to $196.5 million for the quarter, reflecting continued investment in its drug pipeline, particularly for Hepatitis C (HCV) and Cystic Fibrosis (CF).
- 6Sales, general, and administrative expenses rose by 22% to $117.5 million for the quarter, supporting the commercialization of INCIVEK and KALYDECO.
- 7The company maintained a strong liquidity position with $1.2 billion in cash, cash equivalents, and marketable securities as of June 30, 2012.