UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO |
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COMMISSION FILE NUMBER 000-19319 |
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VERTEX PHARMACEUTICALS INCORPORATED |
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(Exact name of registrant as specified in its charter) |
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MASSACHUSETTS |
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04-3039129 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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130 WAVERLY STREET |
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(Address of principal executive offices)(zip code) |
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(617) 444-6100 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
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Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Common Stock, par value $.01 per share |
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77,700,911 |
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Class |
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Outstanding at November 7, 2003 |
Vertex Pharmaceuticals Incorporated
Form 10-Q
For the Quarter Ended September 30, 2003
Table of Contents
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Vertex Pharmaceuticals Incorporated
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
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September 30, 2003 |
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December 31, 2002 |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
77,449 |
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$ |
108,098 |
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Marketable securities, available for sale |
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518,155 |
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526,886 |
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Accounts receivable |
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7,850 |
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13,200 |
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Prepaid expenses |
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3,428 |
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4,349 |
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Other current assets |
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3,393 |
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4,039 |
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Total current assets |
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610,275 |
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656,572 |
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Restricted cash |
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26,061 |
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26,091 |
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Property and equipment, net |
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82,029 |
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95,991 |
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Investments |
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18,863 |
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26,433 |
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Other assets |
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5,448 |
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10,633 |
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Total assets |
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$ |
742,676 |
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$ |
815,720 |
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Liabilities and Stockholders’ Equity: |
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Current liabilities: |
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Accounts payable |
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$ |
8,069 |
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$ |
16,745 |
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Accrued expenses and other current liabilities |
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22,475 |
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29,306 |
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Accrued interest |
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518 |
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4,463 |
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Obligations under capital leases |
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443 |
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1,965 |
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Deferred revenue |
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8,774 |
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11,888 |
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Accrued restructuring and other expense |
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75,152 |
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— |
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Other obligations |
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4,394 |
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230 |
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Total current liabilities |
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119,825 |
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64,597 |
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Obligations under capital leases, excluding current portion |
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— |
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99 |
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Collaborator development loan |
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18,460 |
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5,000 |
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Other obligations, excluding current portions |
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7,037 |
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5,845 |
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Deferred revenue, excluding current portion |
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51,072 |
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46,598 |
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Convertible subordinated notes (due September 2007) |
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315,000 |
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315,000 |
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Total liabilities |
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511,394 |
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437,139 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued and outstanding |
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— |
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Common stock, $0.01 par value; 200,000,000 shares authorized; 77,476,100 and 76,357,412 shares issued and outstanding at September 30, 2003 and December 31, 2002, respectively |
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775 |
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764 |
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Additional paid-in capital |
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805,715 |
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794,206 |
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Accumulated other comprehensive income |
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3,683 |
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6,764 |
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Accumulated deficit |
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(578,891 |
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(423,153 |
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Total stockholders’ equity |
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231,282 |
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378,581 |
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Total liabilities and stockholders’ equity |
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$ |
742,676 |
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$ |
815,720 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
1
Vertex Pharmaceuticals Incorporated
Condensed Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Data)
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Three Months Ended |
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Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Pharmaceutical revenues: |
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Royalties |
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$ |
2,003 |
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$ |
2,610 |
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$ |
5,944 |
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$ |
7,468 |
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Collaborative research and development revenues |
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13,820 |
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18,792 |
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41,820 |
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55,728 |
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Discovery tools and service revenues: |
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Product sales and royalties |
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2,529 |
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8,147 |
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9,498 |
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38,944 |
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Service revenues |
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— |
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4,727 |
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1,275 |
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15,161 |
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Total revenues |
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18,352 |
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34,276 |
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58,537 |
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117,301 |
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Costs and expenses: |
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Cost of royalties |
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798 |
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880 |
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2,117 |
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2,525 |
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Cost of product sales and royalties |
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853 |
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