Replies to post #160563 on Biotech Values

[jq1234]

VRTX took a large one time charge to write down VX222 last qtr:

This includes a charge of $412,900,000 for the impairment of our HCV asset, VX-222. At this stage of development of our portfolio of HCV assets and given the progression of other regimens by other companies, we are able -- we are unable to support the fair value of VX-222 on our balance sheet. And accordingly, we are taking a write-down in the value of this intangible asset. We also record a tax benefit for VX-222 of $127.6 million, results in a net charge of $285 million.

[oc631]

management was already guiding investors to stop thinking of VRTX as an HCV company.

Just to clarify. VRTX wants investors (as of April 2013) to believe they are still a player in HCV. Not a has been. There may be some substance to this given the scarcity value within the Uridine nuke class (VX-135).

[DewDiligence]

VRTX axes 370 jobs amid collapse of Incivek franchise:

http://finance.yahoo.com/news/vertex-cuts-jobs-forecast-hep-123903575.html

Vertex Pharmaceuticals Inc lowered its full-year revenue forecast and said it would cut about 370 jobs after sales of its hepatitis C drug plunged in the third quarter. Vertex said it would incur a restructuring charge of about $35 million to $45 million in 2013 related to the job cuts.

Incivek sales fell 66% [YoY] to $85.6 million in the third quarter.

VRTX’s own PR on the layoff: http://finance.yahoo.com/news/vertex-focuses-investment-future-opportunities-120400421.html .