Summary
Vertex Pharmaceuticals Inc. reported a net loss attributable to Vertex of $103.0 million for the third quarter of 2017, compared to a net loss of $38.8 million in the prior year's third quarter. This widened loss was primarily driven by a significant $255.3 million intangible asset impairment charge related to Parion's pulmonary ENaC platform and a $160.0 million acquisition payment for VX-561, which were not present in the prior year period. Despite the net loss, total revenues saw a substantial increase of 40% year-over-year, reaching $578.2 million, propelled by strong growth in product revenues from ORKAMBI and KALYDECO, which increased by 34% and 22% respectively. For the nine months ended September 30, 2017, Vertex reported a net income of $162.8 million, a significant improvement from a net loss of $145.0 million in the same period last year. This turnaround was aided by continued growth in product revenues and a substantial $231.7 million in collaborative revenue recognized from the Merck KGaA agreement. However, the operating costs and expenses also increased considerably, largely due to the aforementioned impairment charge and acquisition payment. Investors should note the significant R&D investments continuing, especially in next-generation CFTR corrector compounds, which are crucial for future growth, alongside the ongoing regulatory review for tezacaftor in combination with ivacaftor.
Financial Highlights
50 data points| Revenue | $578.16M |
| Cost of Revenue | $72.87M |
| Gross Profit | $505.29M |
| R&D Expenses | $454.95M |
| SG&A Expenses | $120.71M |
| Operating Expenses | $904.21M |
| Operating Income | -$326.04M |
| Net Income | -$102.95M |
| EPS (Basic) | $-0.41 |
| EPS (Diluted) | $-0.41 |
| Shares Outstanding (Basic) | 250.27M |
| Shares Outstanding (Diluted) | 250.27M |
Key Highlights
- 1Total revenues increased by 40% year-over-year to $578.2 million in Q3 2017, driven by robust product sales growth.
- 2Product revenues from ORKAMBI and KALYDECO grew by 34% and 22% respectively year-over-year in Q3 2017.
- 3A significant $255.3 million intangible asset impairment charge was recorded related to Parion's pulmonary ENaC platform.
- 4The company made a $160.0 million payment for the acquisition of VX-561, an investigational CFTR potentiator.
- 5For the nine months ended September 30, 2017, Vertex reported a net income of $162.8 million, a substantial improvement from a net loss in the prior year period.
- 6The company recognized $286.1 million in collaborative revenues for the nine months ended September 30, 2017, primarily from the Merck KGaA agreement.
- 7Vertex continues to invest heavily in R&D, particularly in next-generation CFTR corrector compounds for triple combination therapies.