Vertex Pharma Q3 Loss Widens, Tightens 2014 Revenue Outlook

(RTTNews) - Vertex Pharmaceuticals Inc (VRTX) on Tuesday reported a loss for the third quarter that widened from last year on lower revenues and higher charges. However, revenues for the quarter beat analysts' estimates. Looking ahead, the company tightened its revenue outlook for fiscal 2014.

The Boston, Massachusetts-based company's net loss for the third quarter was $170.06 million or $0.72 per share, wider than loss of $124.13 million or $0.53 per share in the same period last year.

The latest quarter's results include net charges of $83.8 million, compared to net charges of $49.7 million in the year-ago period.

Excluding items, adjusted loss for the quarter was $0.37 per share, compared with adjusted loss of $0.32 per share in the previous-year quarter. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

The latest quarter's results reflect a reduction in Incivek net product revenues, partially offset by increased Kalydeco product revenues, decreased operating expenses and the revenues from a one-time payment of $30 million from Janssen related to the out-licensing of VX-787.

Revenues for the quarter declined 19 percent to $178.99 million from $221.70 million in the prior-year period. Analysts had a consensus revenue estimate of $146.2 million for the quarter.

However, net product revenues from Kalydeco rose 25 percent from the year-ago period to $126.8 million. The increase was primarily due to use of Kalydeco in the U.S. in people with the additional mutations approved by the FDA in February 2014 and from an increase of about $7 million that resulted from changes in Vertex's distribution network.

Incivek revenues for the quarter fell 88 percent from last year to $10.3 million.

Total costs and expenses for the quarter declined 7 percent from the prior-year quarter to $321.19 million.

Looking ahead to fiscal 2014, Vertex Pharma now expects adjusted revenues of $525 million to $535 million, compared to the prior guidance of $520 million to $550 million. Analysts expect revenues of $551.82 million for the year.

The company now projects Kalydeco net product revenues for the year of about $460 million, compared to the prior range of $470 million to $500 million.

VRTX closed Tuesday's regular trading at $114.07, up $2.48 or 2.22 percent on a volume of 2.17 million shares. However, in after-hours, the stock declined $2.07 or 1.81 percent to $112.00.