Quarterly Financial Data (unaudited)

The following table sets forth the Company’s quarterly financial data for the two years ended December 31, 2015 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, 2015			June 30, 2015			September 30, 2015			December 31, 2015
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	130,875		$	160,388		$	302,511		$	406,550
Royalty revenues	6,792			5,077			5,759			6,331
Collaborative revenues	842			611			1,546			5,054
Total revenues	138,509			166,076			309,816			417,935
Costs and expenses:
Cost of product revenues	9,381			15,409			30,269			62,092
Royalty expenses	2,926			1,451			1,691			1,293
Research and development expenses (1)	215,599			223,858			246,284			310,181
Sales, general and administrative expenses	85,860			94,394			99,772			96,549
Restructuring (income) expenses	(3,272		)	2,128			1,826			1,524
Total costs and expenses	310,494			337,240			379,842			471,639
Loss from operations	(171,985		)	(171,164		)	(70,026		)	(53,704		)
Interest expense, net	(21,307		)	(21,111		)	(21,134		)	(20,654		)
Other (expense) income, net	(5,113		)	1,414			(1,326		)	(1,690		)
Loss before provision for (benefit from) income taxes	(198,405		)	(190,861		)	(92,486		)	(76,048		)
Provision for (benefit from) income taxes	299			30,131			1,330			(1,379		)
Net loss	(198,704		)	(220,992		)	(93,816		)	(74,669		)
Loss (income) attributable to noncontrolling interest	98			32,144			(1,333		)	938
Net loss attributable to Vertex	$	(198,606	)	$	(188,848	)	$	(95,149	)	$	(73,731	)

Amounts per share attributable to Vertex common shareholders:
Net loss:
Basic and diluted	$	(0.83	)	$	(0.78	)	$	(0.39	)	$	(0.30	)
Shares used in per share calculations:
Basic and diluted	239,493			240,757			241,969			242,987



	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 (2)	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 (income) (3)	6188			(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 (4)	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, net of tax benefit	(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	(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


1.	During fourth quarter of 2015, the Company made a one-time $75.0 million upfront payment to CRISPR Therapeutics in connection with the collaboration, which was recorded as a research and development expense. See Note B, “Collaborative Arrangements,” for further information.


2.	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 revenues. See Note B, “Collaborative Arrangements,” for further information.


3.	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.


4.	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. See Note O, “Other Arrangements,” for further information.