Summary
Vertex Pharmaceuticals reported a net loss attributable to Vertex of $57.2 million ($0.26 per diluted share) for the second quarter of 2013, an improvement from the $64.9 million loss ($0.31 per diluted share) in the same period last year. This improvement was driven by a significant decrease in product revenues, primarily due to declining INCIVEK sales, offset by increased KALYDECO revenues and higher royalty income from INCIVO. Despite the revenue decline, the company managed operating expenses, leading to a narrower loss. However, the first half of 2013 saw a substantial net loss of $365.2 million, largely impacted by a significant $412.9 million intangible asset impairment charge related to the VX-222 drug candidate. The company continues to invest heavily in research and development, particularly in cystic fibrosis and Hepatitis C, with several key drug candidates in late-stage development. Management expects current cash, cash equivalents, and marketable securities to be sufficient for at least the next twelve months.
Financial Highlights
48 data points| Revenue | $310.75M |
| Cost of Revenue | $24.70M |
| Gross Profit | $286.06M |
| R&D Expenses | $213.99M |
| SG&A Expenses | $105.08M |
| Operating Expenses | $357.78M |
| Operating Income | -$47.03M |
| Net Income | -$57.16M |
| EPS (Basic) | $-0.26 |
| EPS (Diluted) | $-0.26 |
| Shares Outstanding (Basic) | 222.05M |
| Shares Outstanding (Diluted) | 222.05M |
Key Highlights
- 1Second quarter 2013 net loss attributable to Vertex was $57.2 million, an improvement from $64.9 million in the prior year's second quarter.
- 2Total revenues decreased by 25% for the six months ended June 30, 2013, compared to the same period in 2012, primarily due to a 30% drop in product revenues.
- 3Product revenues were significantly impacted by a 47% decline in INCIVEK sales for the first half of 2013, partially offset by a 151% increase in KALYDECO sales.
- 4A significant $412.9 million intangible asset impairment charge was recorded in the first half of 2013 related to the VX-222 drug candidate.
- 5Research and development expenses increased by 12% for the six months ended June 30, 2013, reflecting ongoing investment in key programs.
- 6The company successfully converted its $400 million in convertible senior subordinated notes due 2015 in the second quarter of 2013, reducing future debt obligations.
- 7Vertex ended the period with $1.4 billion in cash, cash equivalents, and marketable securities, providing a strong liquidity position.