What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to report on Vertex Pharmaceuticals' financial results for the initial 31-day period following its acquisition of Aurora Biosciences Corporation, accounted for under the pooling-of-interests method. It also discloses a change in accounting policy related to revenue recognition.

What were Vertex's financial results for the period after acquiring Aurora?

For the 31 days ending August 31, 2001, Vertex reported consolidated total revenues of $13.9 million. The company incurred a net loss of $4.1 million ($0.06 per share), which included $886,000 in merger-related costs. The net loss, excluding these costs, was $3.3 million ($0.04 per share).

What impact is the change in revenue recognition policy expected to have?

Vertex elected to change its revenue recognition policy in the third quarter of 2001, retroactive to January 1, 2001. The company expects this change to have a material effect on its anticipated financial results for the full year ending December 31, 2001. The cumulative effect will be recorded as of January 1, 2001.

Why is this specific financial information being disclosed?

This financial information is being disclosed to comply with SEC Accounting Series Releases 130 and 135. This compliance is necessary to allow affiliates to sell Vertex's common stock without affecting the pooling-of-interests accounting for the Aurora acquisition.

VRTX 8-K SEC Disclosure

Summary

Vertex Pharmaceuticals Incorporated (VRTX) filed an 8-K on September 20, 2001, reporting on the post-acquisition period following its July 18, 2001, acquisition of Aurora Biosciences Corporation. The filing provides preliminary financial data for the 31-day period ending August 31, 2001. During this period, Vertex generated consolidated total revenues of $13.9 million and reported a net loss of $4.1 million ($0.06 per share), which included approximately $0.9 million in merger-related costs. Excluding these costs, the net loss was $3.3 million ($0.04 per share).

Key Highlights

1Vertex Pharmaceuticals acquired Aurora Biosciences Corporation on July 18, 2001, using the pooling-of-interests method.
2For the 31-day period ending August 31, 2001, consolidated total revenues were $13.9 million.
3The company reported a net loss of $4.1 million ($0.06 per share) for the period.
4Merger-related costs of $886,000 were included in the reported net loss.
5Excluding merger costs, the net loss for the period was $3.3 million ($0.04 per share).
6Vertex changed its revenue recognition policy in Q3 2001, retroactive to January 1, 2001, expecting a material effect on full-year 2001 results.
7This disclosure is primarily for SEC compliance related to the Aurora acquisition and affiliate stock sales, not necessarily indicative of future performance.

VERTEX PHARMACEUTICALS INC / MA 8-K Report (Sep 20, 2001)

Summary

Key Highlights

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