On Feb. 1, Vertex Pharmaceuticals (NASDAQ:VRTX) released its earnings for the fourth quarter ended Dec. 31.

  • Vertex's hepatitis C drug, telaprevir, has shown good clinical trial results to date. Phase 3 trials are expected to start this year, with filing for Food and Drug Administration approval to follow in 2008.
  • For the full year 2007, Vertex expects total revenue of $280 million to $320 million.
  • Vertex expects research and development expenses of $560 million to $600 million for 2007, including $45 million of expenses for stock-based compensation.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$94.3

$63.8

47.8%

Net Profit

($27.3)

($38.1)

N/A

EPS

($0.22)

($0.38)

N/A

Diluted Shares

123.9

100.5

23.3%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

96.6%

95.6%

1.0

Operating Margin

(37.1%)

(41.4%)

4.3

Net Margin

(29.0%)

(59.8%)

30.8

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$761.8

$407.5

86.9%

Accounts Rec.

No data

No data

No data

Inventory

No data

No data

No data



There was no data for liabilities.

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Cash Flow Highlights
A statement of cash flows wasn't provided.

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Related companies:

  • InterMune (NASDAQ:ITMN)
  • OSI Pharmaceuticals (NASDAQ:OSIP)
  • Cephalon (NASDAQ:CEPH)
  • Sepracor (NASDAQ:SEPR)
  • Schering-Plough (NYSE:SGP)

Related Foolishness:

Vertex Pharmaceuticals and InterMune are Rule Breakers selections. InterMune is up 101% and Vertex is up 225% since the recommendations were made. See how the rest of the picks are doing with a free trial.

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