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Quarterly Financial Data (unaudited)
 12 Months Ended
Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited)
The following table sets forth our quarterly financial data for the two years ended December 31, 2014 and have been revised to reflect discontinued operations for quarterly periods prior to the three months ended September 30, 2014.
 
Three Months Ended
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
 
 
Product revenues, net
$
103,461

 
$
122,319

 
$
137,099

 
$
124,942

Royalty revenues
10,733

 
13,015

 
8,386

 
8,785

Collaborative revenues (1)
4,257

 
3,087

 
33,502

 
10,829

Total revenues
118,451

 
138,421

 
178,987

 
144,556

Costs and expenses:
 
 
 
 
 
 
 
Cost of product revenues
8,572

 
9,655

 
10,208

 
11,290

Royalty expenses
6,904

 
7,645

 
3,976

 
2,737

Research and development expenses
238,617

 
224,487

 
190,939

 
201,463

Sales, general and administrative expenses
74,212

 
77,446

 
75,224

 
78,527

Restructuring expenses (2)
6,188

 
(270
)
 
40,843

 
4,164

Total costs and expenses
334,493

 
318,963

 
321,190

 
298,181

Loss from operations
(216,042
)
 
(180,542
)
 
(142,203
)
 
(153,625
)
Interest expense, net
(15,717
)
 
(15,585
)
 
(20,384
)
 
(21,177
)
Other income (expense), net (3)
451

 
37,731

 
(3,990
)
 
(3,792
)
Loss from continuing operations before provision for income taxes
(231,308
)
 
(158,396
)
 
(166,577
)
 
(178,594
)
Provision for income taxes
803

 
693

 
3,419

 
2,043

Loss from continuing operations
(232,111
)
 
(159,089
)
 
(169,996
)
 
(180,637
)
Loss from discontinued operations (4)
(346
)
 
(293
)
 
(64
)
 
(209
)
Net loss
(232,457
)
 
(159,382
)
 
(170,060
)
 
(180,846
)
Loss attributable to noncontrolling interest
—

 
—

 
—

 
4,190

Net loss attributable to Vertex
$
(232,457
)
 
$
(159,382
)
 
$
(170,060
)
 
$
(176,656
)
 
 
 
 
 
 
 
 
Amounts attributable to Vertex:
 
 
 
 
 
 
 
Loss from continuing operations attributable to Vertex
$
(232,111
)
 
$
(159,089
)
 
$
(169,996
)
 
$
(176,447
)
Loss from discontinued operations (4)
(346
)
 
(293
)
 
(64
)
 
(209
)
Net loss attributable to Vertex
$
(232,457
)
 
$
(159,382
)
 
$
(170,060
)
 
$
(176,656
)
 
 
 
 
 
 
 
 
Amounts per share attributable to Vertex common shareholders:
 
 
 
 
 
 
 
Net loss from continuing operations:
 
 
 
 
 
 
 
    Basic and diluted
$
(1.00
)
 
$
(0.68
)
 
$
(0.72
)
 
$
(0.74
)
Net loss from discontinued operations:
 
 
 
 
 
 
 
    Basic and diluted
$
—

 
$
—

 
$
—

 
$
—

Net loss:
 
 
 
 
 
 
 
    Basic and diluted
$
(1.00
)
 
$
(0.68
)
 
$
(0.72
)
 
$
(0.74
)
Shares used in per share calculations:
 
 
 
 
 
 
 
    Basic and diluted
232,887

 
233,808

 
236,137

 
238,272

 
Three Months Ended
 
March 31,
2013
 
June 30,
2013
 
September 30,
2013
 
December 31,
2013
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
 
 
Product revenues, net
$
267,381

 
$
254,789

 
$
186,653

 
$
128,822

Royalty revenues
43,573

 
49,120

 
27,012

 
36,887

Collaborative revenues (5)
17,414

 
6,841

 
8,035

 
185,448

Total revenues
328,368

 
310,750

 
221,700

 
351,157

Costs and expenses:
 
 
 
 
 
 
 
Cost of product revenues
30,955

 
24,695

 
20,048

 
13,281

Royalty expenses
11,788

 
13,236

 
7,291

 
8,983

Research and development expenses
210,200

 
213,994

 
219,442

 
238,461

Sales, general and administrative expenses
91,625

 
105,081

 
86,427

 
73,055

Restructuring expenses
39

 
776

 
12,048

 
27,658

Intangible asset impairment charge (4)
412,900

 
—

 
—

 
—

Total costs and expenses
757,507

 
357,782

 
345,256

 
361,438

Loss from operations
(429,139
)
 
(47,032
)
 
(123,556
)
 
(10,281
)
Interest expense, net
(3,469
)
 
(6,727
)
 
(104
)
 
(12,626
)
Other (expense) income, net
(1,175
)
 
(34
)
 
4,760

 
3,339

Loss from continuing operations before (benefit from) provision for income taxes
(433,783
)
 
(53,793
)
 
(118,900
)
 
(19,568
)
(Benefit from) provision for income taxes (6)
(126,887
)
 
558

 
2,555

 
1,352

Loss from continuing operations
(306,896
)
 
(54,351
)
 
(121,455
)
 
(20,920
)
Loss from discontinued operations, net of tax benefit (4)
(5,731
)
 
(7,361
)
 
(7,207
)
 
(163,629
)
Net loss
(312,627
)
 
(61,712
)
 
(128,662
)
 
(184,549
)
Loss from discontinued operations attributable to noncontrolling interest (4)
4,611

 
4,547

 
4,530

 
228,834

Net (loss) income attributable to Vertex
$
(308,016
)
 
$
(57,165
)
 
$
(124,132
)
 
$
44,285

 
 
 
 
 
 
 
 
Amounts attributable to Vertex:
 
 
 
 
 
 
 
Loss from continuing operations attributable to Vertex
$
(306,896
)
 
$
(54,351
)
 
$
(121,455
)
 
$
(20,920
)
(Loss) income from discontinued operations (4)
(1,120
)
 
(2,814
)
 
(2,677
)
 
65,205

Net (loss) income attributable to Vertex
$
(308,016
)
 
$
(57,165
)
 
$
(124,132
)
 
$
44,285

 
 
 
 
 
 
 
 
Amounts per share attributable to Vertex common shareholders:
 
 
 
 
 
 
 
Net loss from continuing operations:
 
 
 
 
 
 
 
    Basic and diluted
$
(1.42
)
 
$
(0.25
)
 
$
(0.53
)
 
$
(0.09
)
Net (loss) income from discontinued operations:
 
 
 
 
 
 
 
    Basic and diluted
$
(0.01
)
 
$
(0.01
)
 
$
(0.01
)
 
$
0.28

Net (loss) income:
 
 
 
 
 
 
 
    Basic and diluted
$
(1.43
)
 
$
(0.26
)
 
$
(0.54
)
 
$
0.19

Shares used in per share calculations:
 
 
 
 
 
 
 
    Basic and diluted
215,421

 
222,053

 
230,505

 
231,264


1.
During the third quarter of 2014, the Company received a non-refundable up-front payment of $30.0 million from Janssen Inc., which was recorded as collaborative revenue in the third quarter. See Note B, “Collaborative Arrangements,” for further information.
2.
During the third quarter of 2014, the Company recorded $40.8 million of restructuring expenses primarily related to the relocation of its corporate headquarters to Boston from Cambridge. See Note Q, “Restructuring Expenses,” for further information.
3.
During the second quarter of 2014, the Company received a one-time cash payment of $36.7 million from its landlord pursuant to the Fan Pier Leases, which was recorded as other income in the second quarter. See Note O, “Other Arrangements,” for further information.

4.
During the fourth quarter of 2013, the Company deconsolidated Alios, which included certain charges attributable to Vertex related to the deconsolidation recorded in other income (expense), net, and was preceded by a $250.6 million intangible asset impairment charge related to the HCV nucleotide analogue program indefinite-lived in-process research and development asset. In connection with this impairment charge, a credit of $102.1 million was recorded to the provision for income taxes attributable to Alios. As of September 30, 2014, the Company concluded that it no longer had significant continuing involvement with Alios due to its intent and ability to terminate the Alios Agreement; therefore, the operations of Alios, including collaboration expenses reimbursed by Vertex are presented as discontinued operations for the periods presented in these consolidated financial statements.
5.
During the fourth quarter of 2013, the Company recorded $182.4 million of collaborative revenue related to its Janssen collaboration, which was primarily attributable to an amendment to its collaboration agreement with Janssen. See Note B, “Collaborative Arrangements,” for further information.
6.
During the first quarter of 2013, the Company recorded a $412.9 million intangible asset impairment charge related to its VX-222 indefinite-lived in-process research and development asset. In connection with this impairment charge, the Company recorded a credit of $127.6 million in its provision for income taxes. See Note J, “Intangible Assets and Goodwill,” for further information.