Macro Tsimmis

intelligently hedged investment

Vertex (VRTX) update #27

Posted by intelledgement on Mon, 08 Jun 09

Yet another seven million shares of dilution for our biotech spec play Vertex (VRTX) with the promising hepatitis C drug, telaprevir, in Phase 3 trials. They are issuing the shares to bondholders in exchange for $143.5 million worth of 4.75% Convertible Senior Subordinated Notes due 2013. The deal improves the company’s balance sheet and cash position.

Vertex now have about 180 million shares outstanding, which is about 2.6 million shares fewer than we had projected by the end of 2009 in our latest valuations projections spreadsheet (which is a good thing, presuming no more shares are issued by year-end).

Previous VRTX-related posts:

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