MASSACHUSETTS (State or other jurisdiction of incorporation) | 000-19319 (Commission File Number) | 04-3039129 (IRS Employer Identification No.) |
• | unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2013 and for the year ended December 31, 2012; and |
• | unaudited pro forma condensed consolidated balance sheet as of September 30, 2013. |
99.1 | Vertex Pharmaceuticals Incorporated unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2013 and for the year ended December 31, 2012, and unaudited pro forma condensed consolidated balance sheet as of September 30, 2013. |
VERTEX PHARMACEUTICALS INCORPORATED | |
(Registrant) | |
Date: January 31, 2014 | /s/ Kenneth L. Horton |
Kenneth L. Horton Executive Vice President and Chief Legal Officer | |
Vertex | Pro Forma Adjustments | Notes | Pro Forma | ||||||||||
Revenues: | |||||||||||||
Product revenues, net | $ | 708,823 | $ | — | $ | 708,823 | |||||||
Royalty revenues | 119,705 | — | 119,705 | ||||||||||
Collaborative revenues | 32,290 | — | 32,290 | ||||||||||
Total revenues | 860,818 | — | 860,818 | ||||||||||
Costs and expenses: | |||||||||||||
Cost of product revenues | 75,698 | — | 75,698 | ||||||||||
Royalty expenses | 32,315 | — | 32,315 | ||||||||||
Research and development expenses | 669,174 | (17,339 | ) | (a)(b) | 651,835 | ||||||||
Sales, general and administrative expenses | 287,154 | (4,009 | ) | (a)(b) | 283,145 | ||||||||
Restructuring expense | 12,863 | — | 12,863 | ||||||||||
Intangible asset impairment charge | 412,900 | — | 412,900 | ||||||||||
Total costs and expenses | 1,490,104 | (21,348 | ) | 1,468,756 | |||||||||
Income (loss) from operations | (629,286 | ) | 21,348 | (607,938 | ) | ||||||||
Interest income | 4,986 | (173 | ) | (a) | 4,813 | ||||||||
Interest expense | (11,564 | ) | 2 | (a) | (11,562 | ) | |||||||
Income (loss) before provision for (benefit from) income taxes | (635,864 | ) | 21,177 | (614,687 | ) | ||||||||
Provision for (benefit from) income taxes | (132,863 | ) | 9,089 | (a) | (123,774 | ) | |||||||
Net income (loss) | (503,001 | ) | 12,088 | (490,913 | ) | ||||||||
Net loss (income) attributable to noncontrolling interest (Alios) | 13,688 | (13,688 | ) | (a) | — | ||||||||
Net loss attributable to Vertex | $ | (489,313 | ) | $ | (1,600 | ) | $ | (490,913 | ) | ||||
Net loss per share attributable to Vertex common shareholders: | |||||||||||||
Basic | $ | (2.20 | ) | $ | (2.20 | ) | |||||||
Diluted | $ | (2.20 | ) | $ | (2.20 | ) | |||||||
Shares used in per share calculations: | |||||||||||||
Basic | 222,764 | 222,764 | |||||||||||
Diluted | 222,764 | 222,764 |
Vertex | Pro Forma Adjustments | Notes | Pro Forma | ||||||||||
Revenues: | |||||||||||||
Product revenues, net | $ | 1,333,458 | $ | — | $ | 1,333,458 | |||||||
Royalty revenues | 141,498 | — | 141,498 | ||||||||||
Collaborative revenues | 52,086 | — | 52,086 | ||||||||||
Total revenues | 1,527,042 | — | 1,527,042 | ||||||||||
Costs and expenses: | |||||||||||||
Cost of product revenues | 236,742 | — | 236,742 | ||||||||||
Royalty expenses | 43,143 | — | 43,143 | ||||||||||
Research and development expenses | 806,185 | 8,736 | (c)(d)(e) | 814,921 | |||||||||
Sales, general and administrative expenses | 436,796 | (3,798 | ) | (c)(e) | 432,998 | ||||||||
Restructuring expense | 1,844 | — | 1,844 | ||||||||||
Total costs and expenses | 1,524,710 | 4,938 | 1,529,648 | ||||||||||
Income (loss) from operations | 2,332 | (4,938 | ) | (2,606 | ) | ||||||||
Interest income | 1,940 | (207 | ) | (c) | 1,733 | ||||||||
Interest expense | (16,653 | ) | 189 | (c) | (16,464 | ) | |||||||
Income (loss) before provision for (benefit from) income taxes | (12,381 | ) | (4,956 | ) | (17,337 | ) | |||||||
Provision for (benefit from) income taxes | 38,754 | (39,029 | ) | (c) | (275 | ) | |||||||
Net income (loss) | (51,135 | ) | 34,073 | (17,062 | ) | ||||||||
Net loss (income) attributable to noncontrolling interest (Alios) | (55,897 | ) | 55,897 | (c) | — | ||||||||
Net income (loss) attributable to Vertex | $ | (107,032 | ) | $ | 89,970 | $ | (17,062 | ) | |||||
Net loss per share attributable to Vertex common shareholders: | |||||||||||||
Basic | $ | (0.50 | ) | $ | (0.08 | ) | |||||||
Diluted | $ | (0.50 | ) | $ | (0.08 | ) | |||||||
Shares used in per share calculations: | |||||||||||||
Basic | 211,946 | 211,946 | |||||||||||
Diluted | 211,946 | 211,946 |
Vertex | Pro Forma Adjustments | Notes | Pro Forma | ||||||||||
Assets | |||||||||||||
Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 583,181 | $ | — | $ | 583,181 | |||||||
Marketable securities, available for sale | 839,469 | — | 839,469 | ||||||||||
Restricted cash and cash equivalents (Alios) | 51,059 | (51,059 | ) | (f) | — | ||||||||
Other current assets | 174,922 | (8,820 | ) | (f) | 166,102 | ||||||||
Total current assets | 1,648,631 | (59,879 | ) | 1,588,752 | |||||||||
Property and equipment, net | 648,924 | (1,374 | ) | (f) | 647,550 | ||||||||
Intangible assets | 250,600 | (250,600 | ) | (f) | — | ||||||||
Other assets | 34,593 | (153 | ) | (f) | 34,440 | ||||||||
Total assets | $ | 2,582,748 | $ | (312,006 | ) | $ | 2,270,742 | ||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Current liabilities: | |||||||||||||
Accrued expenses | $ | 280,848 | $ | (6,409 | ) | (f) | $ | 274,439 | |||||
Other current liabilities | 128,651 | (1,052 | ) | (f) | 127,599 | ||||||||
Total current liabilities | 409,499 | (7,461 | ) | 402,038 | |||||||||
Other liabilities, excluding current portions | 143,797 | (761 | ) | (f) | 143,036 | ||||||||
Deferred tax liability | 150,203 | (150,203 | ) | (f) | — | ||||||||
Construction financing lease obligation | 392,569 | — | 392,569 | ||||||||||
Total liabilities | 1,096,068 | (158,425 | ) | 937,643 | |||||||||
Redeemable noncontrolling interest (Alios) | 39,624 | (39,624 | ) | (f) | — | ||||||||
Shareholders' equity: | |||||||||||||
Common stock | 2,311 | — | 2,311 | ||||||||||
Additional paid-in capital | 5,274,307 | — | 5,274,307 | ||||||||||
Accumulated other comprehensive loss | (550 | ) | — | (550 | ) | ||||||||
Accumulated deficit | (4,011,180 | ) | 68,211 | (f) | (3,942,969 | ) | |||||||
Total Vertex shareholders’ equity | 1,264,888 | 68,211 | 1,333,099 | ||||||||||
Noncontrolling interest (Alios) | 182,168 | (182,168 | ) | — | |||||||||
Total shareholders’ equity | 1,447,056 | (113,957 | ) | 1,333,099 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,582,748 | $ | (312,006 | ) | $ | 2,270,742 |