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One Share Offering Too Many for Vertex?

Brian Lawler
September 24, 2008

There are only two primary paths that a development stage drugmaker with no recurring revenue can take to raise cash. It can either give up an ownership interest in one or more of its drugs in development, or it can give up an ownership interest in itself.

Vertex Pharmaceuticals (Nasdaq: VRTX  ) went down that second path. It announced Monday that it had completed a stock offering that will provide an additional $220 million in cash, before fees. In exchange, current shareholders will be diluted by about another 6% to 7%.

This share offering is Vertex’s third selling of common stock since the start of 2006. All t