Macro Tsimmis

intelligently hedged investment

Vertex (VRTX) update #26

Posted by intelledgement on Thu, 16 Apr 09

Our development-stage biotech company, Vertex Pharmaceutical (VRTX), announced their 1Q09 results today: the company lost $161.5 million, or $1.04 per share compared to a net loss for 1Q08 of $96.2 million, or $0.72 per share. According to the press release, the increased red ink “was principally attributable to a decrease in collaborative revenues and an increase in total operating expenses to support telaprevir’s global Phase 3 registration program and commercialization, and preparation for advancement of VX-770 [the anti-cystic fibrosis drug that is due to start a Phase 3 trial later this quarter] into a registration program.”

The company ended the quarter with $869.2 million in cash, so at least we have something to show for all the dilution we have endured. The money will come in handy as management now project a loss of $500-to-$535 million for all of 2009. And we still have to get through 2010—Phase 3 trial results for telaprevir are expected mid-2010—and probably into 2011 before an FDA approval could occur and serious revenue (and black ink) starts to flow…so more dilution in 2010 is likely.

In addition to the ongoing Phase 3 trials, management expect completion of a Phase 2 study examining the effectiveness of telaprevir with a two-dose-per-day regimen by the end of 2009. The Phase 3 trials utilize three-doses-day, and it would obviously be better if patients could achieve comparable results on a two-dose regimen.

Previous VRTX-related posts:

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