Vertex

3Q Revenues: $221.7 million (-34%)

3Q Loss: $124.1 million (loss of $57.5 million 3Q12)

Comments: Incivek revenues were $85.6 million in the quarter, compared to $254.3 million 3Q12, reflecting the continued and rapid decline in the number of people being treated with Incivek as new hepatitis C drug near approval. Kalydeco revenues were $101.1 million, down 105%. Royalty revenues from Invico were $21.0 million, up 5%.
 
Vertex announced plans to eliminate 370 positions, primarily related to the support of Incivek, in order to focus its investment on future opportunities in cystic fibrosis and other high-potential R&D programs. The job cuts represent a 15% reduction in the company’s global workforce. Approximately 175 positions are being eliminated in MA. The company anticipates a $150 million to $200 million reduction in 2014 operating expenses compared to 2013.
 
“We have a tremendous opportunity to further transform the treatment of cystic fibrosis and advance our other promising research and development programs,” commented Jeffrey Leiden, M.D., Ph.D., chairman, president and chief executive officer of Vertex. “As new medicines for hepatitis C near approval, fewer people are starting treatment with Incivek, and as a result, we are reducing our workforce supporting this medicine. Today is a difficult day for everyone at Vertex, but these changes are necessary as we work to develop new breakthrough medicines in the coming years.”