"VERTEX PHARMACEUTICALS INC / MA Files SEC form 10-Q, Quarterly Report"
As of September 30, 2012, we had cash, cash equivalents and marketable securities, excluding Alios' cash and cash equivalents, of $1.3 billion. Our net product revenues decreased from $373.3 million in the second quarter of 2012 to $303.5 million in the third quarter of 2012 due to decreased INCIVEK net product revenues partially offset by a small increase in KALYDECO net product revenues. We expect these trends to continue with KALYDECO revenues increasing as a result of its recent approval in the European Union and INCIVEK revenues decreasing in future periods.
"Why Vertex Pharmaceuticals' Shares Plunged"
What: Shares of biotechnology company Vertex Pharmaceuticals (Nasdaq: VRTX ) dropped as much as 17% after the company reported much-worse-than-expected third-quarter results.
So what: For the quarter, Vertex reported a 40% decline in Incivek sales over the year-ago period and a loss of $0.27 per share -- which includes a $57.6 million charge related to expected future payments to Alios BioPharma. Vertex did stick with its full-year forecast for Incivek sales of $1.1 billion to $1.25 billion; however, it made it clear that it's begun its focus on creating the next generation of hepatitis-C treatments that aren't interferon-based. Vertex announced that it'll be testing one of its experimental hepatitis-C therapies, VX-135, in two separate trials with Johnson & Johnson's (NYSE: JNJ ) simeprevir, and GlaxoSmithKline's (NYSE: GSK ) GSK2336805.
So...the SEC doesn't quite say it but, if the INCIVEK's revenue trend continues to decrease and the small increases in KALYDECO can't make up for the revenue loss going forward...what the SEC filing is really saying is Vertex will continue to lose money!!!
Guys, I hate to say this but the P/E of this company at 77.21 is way way way too high for a company now starting to losing money. I can't be long this company! Sorry guys...I sold!