Vertex reports a loss:Spent more money to develop its hepatitis C drug candidate telaprevir along with other drugs

Vertex books bigger 4Q loss on research costs
Feb 3, 2011 6:13 PM ET By The Associated Press

CAMBRIDGE, Mass. (AP) — Vertex Pharmaceuticals Inc. reported a larger fourth-quarter loss on Thursday as it spent more money to develop its hepatitis C drug candidate telaprevir, along with a potential cystic fibrosis treatment and other drugs.

With its research and development costs up 25 percent, Vertex said it lost $180.4 million, or 90 cents per share, in the last three months of 2010. A year ago it booked a smaller loss of $158.6 million, or 86 cents per share. Revenue nearly doubled to $65.5 million from $33.9 million.

Analysts had expected a loss of 92 cents per share and $38.8 million in revenue, according to FactSet.

Vertex has applied for marketing approval of telaprevir in the U.S., Europe, and Canada. The Food and Drug Administration is expected to make a decision by May 23. Vertex is also waiting for data from a late-stage clinical trial of VX-770, its cystic fibrosis drug, and running a mid-stage clinical trial of a regimen that combines telaprevir with another one of its hepatitis C drug candidates, VX-222. The company expects results from that study later in the first quarter.

Vertex said it plans to file for approval of VX-770 in the U.S. and Europe in the second half of 2011.

The company said its research and development costs climbed to $168.9 million from $135.2 million a year ago. However revenue from partnerships more than doubled to $57.1 million from $25.5 million. Royalty revenue was unchanged at $8.4 million.

For the full year, Vertex lost $754.6 million, or $3.77 per share, compared with a loss of $642.2 million, or $3.71 per share, in 2009. Revenue grew 41 percent, to $143.4 million from $101.9 million.

"We believe that our financial position will support our key business objectives through 2012, at which time we expect to begin generating earnings as a cashflow positive company," said Matthew Emmens, chairman, president and CEO, in a statement.

Shares of Vertex fell 17 cents to close at $38.80 on Thursday.

http://www.bloomberg.com/news/2011-02-03/vertex-books-bigger-4q-loss-on-research-costs.html