Summary
Vertex Pharmaceuticals Incorporated (VRTX) filed an 8-K on May 5, 2011, to report the entry into significant lease agreements for approximately 1.1 million square feet of office and laboratory space in Boston, Massachusetts. These leases, for two buildings at Fan Pier (50 Northern Avenue and 11 Fan Pier Boulevard), are scheduled to commence upon completion in late 2013 and have an initial term of 15 years. The aggregate annual rent for both buildings is approximately $72.5 million, exclusive of operating expenses. A critical condition within these leases is their automatic termination if Vertex does not secure U.S. marketing approval for INCIVEK (telaprevir) by December 31, 2011. This filing highlights a substantial commitment to future operational expansion, contingent on the successful regulatory approval of a key product.
Key Highlights
- 1Vertex Pharmaceuticals has entered into long-term lease agreements for approximately 1.1 million square feet of new office and laboratory space in Boston.
- 2The leased space is located at Fan Pier, comprising two buildings: 50 Northern Avenue and 11 Fan Pier Boulevard.
- 3The leases are for buildings under construction, with an expected commencement date in late 2013.
- 4The initial lease term is 15 years from the commencement date.
- 5Aggregate annual rent for the leased space is approximately $72.5 million, excluding operating expenses.
- 6A crucial termination clause requires U.S. marketing approval for INCIVEK (telaprevir) by December 31, 2011, failing which the leases will be automatically terminated.
- 7Vertex has an option to extend the lease term for an additional ten years.