Vertex Pharmaceuticals Reports First Quarter 2001 Financial Results

-- Vertex Continues to Make Clear Progress in Clinic --



Apr 24, 2001, 01:00 ET from Vertex Pharmaceuticals Incorporated

    CAMBRIDGE, Mass., April 24 /PRNewswire Interactive News Release/ -- Vertex
 Pharmaceuticals Incorporated (Nasdaq:   VRTX) reported financial results today
 for the three months ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000119/VERTEXLOGO)
     For the quarter ending March 31, 2001, the Company's net loss was
 $8,870,000, or $0.15 per basic and diluted share.  This compares to a net loss
 of $18,711,000, or $0.36 per basic and diluted share, including a one-time,
 non-cash charge of $3.2 million related to the cumulative effect of a change
 in accounting principle, for the quarter ending March 31, 2000.  Total
 revenues were $19,057,000 for the quarter ending March 31, 2001, as compared
 to $8,132,000 for the quarter ending March 31, 2000.  First-quarter 2001
 revenues primarily consisted of revenue earned under collaborative agreements
 as well as royalty revenue from Agenerase(R) (amprenavir).  The revenue earned
 under collaborative agreements included research and development support as
 well as a $1 million milestone payment from Kissei Pharmaceutical Co., Ltd.
 for the completion of clinical development of Prozei(TM) (amprenavir) in
 Japan.  For the quarter ending March 31, 2001, Vertex's royalty and product
 sales revenue of $2,513,000 was based on estimated worldwide sales of
 Agenerase by GlaxoSmithKline of approximately $16.8 million.  Vertex's total
 costs and expenses for the quarter ended March 31, 2001 were $27,927,000,
 compared with $23,682,000 for the quarter ended March 31, 2000.
     As of March 31, 2001, Vertex had approximately $684,871,000 in cash, cash
 equivalents and investments.
     Vertex's financial results fluctuate from quarter to quarter based on the
 timing of product revenues, partnership payments, and drug development
 expenses.  Financial results for 2000 and 2001 reflect the adoption of SAB 101
 retroactive to January 1, 2000.
     "In the first quarter of 2001, we continued to make clear progress on the
 clinical front," stated Joshua Boger, Ph.D., Chairman and CEO of Vertex
 Pharmaceuticals.  "In Vertex-driven programs, we initiated a Phase II clinical
 trial with VX-745, our p38 MAP kinase inhibitor, in patients with rheumatoid
 arthritis.  We also completed a Phase II clinical trial of merimempodib (VX-
 497), our IMPDH inhibitor for the treatment of hepatitis C virus, in
 combination with interferon alpha.  Based on the preliminary data from this
 clinical trial, we have begun designing subsequent clinical trials of
 merimempodib in patients with hepatitis C."
     Dr. Boger continued, "In our collaborative programs, GlaxoSmithKline
 recently began the third Phase III clinical trial of GW433908 (VX-175), a
 prodrug of the HIV protease inhibitor amprenavir, and Aventis began an
 expanded Phase II clinical trial of pralnacasan (VX-740), our caspase-1 (IL-1
 beta converting enzyme (ICE)) inhibitor in development for the treatment of
 rheumatoid arthritis.  During the quarter, Vertex initiated a clinical study
 with a novel trial design of timcodar, our lead drug candidate in our
 neurophilin ligand program for the treatment of peripheral neuropathy."
     Dr. Boger continued, "As we near the one-year anniversary of the signing
 of our collaboration with Novartis, we are pleased with our progress as we
 have ramped up our chemogenomics platform targeting the kinase family.  Our
 parallel drug discovery platform is performing as we envisioned it would,
 hiring is on plan, and we are on track to select one or more kinase inhibitors
 for preclinical development this year.  In addition, we know that
 chemogenomics is scalable into other multi-target gene families of interest,
 and we believe that the broader application of our strategy could create
 significant new product and alliance opportunities."
     Dr. Boger concluded, "Looking ahead, advancing our pipeline and scaling
 our chemogenomics efforts into additional gene families will be key drivers
 for Vertex.  We intend to pursue the acquisition of technologies, capabilities
 and products that could accelerate our drug discovery and development
 processes, with the goal of further enhancing our productivity."
 
     Pipeline Update
     Vertex-driven Programs
     P38 MAP Kinase Program:  VX-745
     -- In January 2001, Vertex began a dose-ranging multi-center, double-
        blinded, placebo-controlled Phase II clinical trial with VX-745 in
        patients with rheumatoid arthritis.  Vertex is taking this compound
        forward through clinical development with its Far East partner, Kissei.
        Vertex retains U.S. and European commercial rights to VX-745.
 
     IMPDH Program:  Merimempodib (VX-497) and VX-148
     -- Vertex completed a preliminary analysis of a Phase II clinical trial of
        merimempodib (VX-497) in combination with interferon alpha in patients
        with hepatitis C.  Based on this data, the Company is planning longer
        duration studies of merimempodib, which will likely be conducted in
        combination with the new long-lasting pegylated interferon products.
        Merimempodib is an IMPDH inhibitor in development by Vertex for the
        treatment of hepatitis C.  Vertex retains worldwide commercial rights
        to merimempodib.
     -- Vertex began a Phase I clinical trial of VX-148 in the fourth quarter
        of 2000.  VX-148 is an IMPDH inhibitor in development by Vertex for the
        treatment of viral infections and autoimmune diseases.  The Company
        expects to complete this study by mid-2001.
 
     Vertex has 12 drug candidates in development to treat viral diseases,
 inflammation, cancer, autoimmune diseases and neurological disorders.  The
 Company forms strategic collaborations with pharmaceutical partners to
 maximize the full potential of its broad product pipeline and to balance the
 risk and reward of developing and commercializing its product portfolio.  The
 Company has nine collaborations with major pharmaceutical companies which
 provide for a potential $1.4 billion in pre-commercial payments to Vertex.
 
     Collaborative Programs
     HIV Protease Program:  Agenerase and GW433908 (VX-175)
     -- Agenerase is an HIV protease inhibitor discovered by Vertex and
        licensed for development and commercialization to GlaxoSmithKline
        (GSK).  The worldwide presence of Agenerase continues to expand.  The
        drug has recently been approved in Canada and Australia and launched in
        Spain and Italy and now is approved in 33 countries worldwide.
     -- GW433908 is an HIV protease inhibitor discovered by the joint research
        collaboration between GlaxoSmithKline (GSK) and Vertex and licensed by
        GSK.  Recently, GSK began a third Phase III clinical trial of GW433908
        (VX-175) in treatment-experienced patients.  In this randomized, open-
        label trial, GW433908 will be dosed as either 700 mg (one tablet) twice
        daily in combination with 100 mg of the protease inhibitor ritonavir,
        or as 1400 mg (two tablets) once daily in combination with 200 mg
        ritonavir, and will be compared to a third treatment arm of 400 mg
        lopinavir/100 mg ritonavir dosed twice daily.  Two other pivotal trials
        of GW433908 are already underway.  GW433908 is a prodrug of the HIV
        protease inhibitor amprenavir.  If the Phase III program meets its
        objectives, GSK intends to file a New Drug Application (NDA) for
        GW433908 in 2002.
 
     ICE (Caspase-1) Program:  Pralnacasan (VX-740)
     -- Pralnacasan (VX-740) is a caspase-1 (IL-1 beta converting enzyme (ICE))
        inhibitor in development with Vertex's worldwide partner, Aventis.
        Aventis began a Phase II clinical trial of pralnacasan in the first
        quarter of 2001.    The study is a 12-week double-blind, randomized,
        placebo-controlled study in which patients will receive pralnacasan or
        placebo.  Approximately 250 adult patients with active rheumatoid
        arthritis will be enrolled in the study and have the option of a 12-
        week extension of treatment.  Vertex expects to provide an update on
        the next steps for this development program in the first half of 2002.
 
     -- On the intellectual property front, Vertex was granted United States
        Patent No. 6,204,261, which covers a wide variety of compounds useful
        as ICE inhibitors, on March 20, 2001.  The patent covers pralnacasan
        specifically as well as related compounds.  It also covers
        pharmaceutical compositions which contain pralnacasan or related
        compounds.
 
     Neurophilin Ligand Program:  Timcodar
     -- Vertex is continuing clinical development of timcodar, the Company's
        lead drug candidate in its neurophilin program.  In January 2001,
        Vertex began a clinical study with a novel trial design.  This trial is
        designed to assess the activity of timcodar in a novel clinical
        paradigm.  The Company has completed enrollment in this study and
        expects to provide additional information on this clinical program in
        the second half of 2001.
 
     Year 2001 Financial Outlook
     This section contains forward-looking guidance about Vertex's financial
 outlook in 2001.
     -- Vertex's net operating loss for the first quarter of 2001 was lower
        than planned.  This is due primarily to the timing of a planned ramp-up
        in research and development spending.  The Company expects research and
        development expenses to accelerate through 2001.
     -- Net operating loss:  Vertex expects that net operating loss for the
        full year of 2001 will be in the range of $60-$65 million.  While the
        Company will be making significant investments in R&D, it will continue
        to focus on managing its expenses prudently.
     -- Collaborative and other research and development revenue:  For 2001,
        Vertex anticipates that collaborative revenue will be in the range of
        $19-$22 million per quarter.  Collaborative revenue will continue to
        fluctuate based on levels of research and development support as well
        as potential revenue from milestone payments and potential revenue from
        possible new deals.
     -- Royalties and product sales:  Based on current sales trends, Vertex
        assumes that Agenerase royalties will be in the range of $13.50-$14.25
        million based on worldwide sales of $90-$95 million for the full year
        of 2001.  Agenerase, an HIV protease inhibitor, is Vertex's first
        marketed product.
     -- Other income, net:  The Company anticipates that other income, net,
        will be approximately $5-$5.5 million per quarter in 2001.
     -- R&D costs and expenses:  Vertex anticipates that research and
        development costs and expenses for 2001 will be in the mid $30 million
        to low $40 million range per quarter.  The Company's R&D expenditures
        will be higher than historical levels as a result of the Company's
        commitment to make significant investments in its research organization
        and in its industry-leading product pipeline.
     -- SG&A:  The Company expects SG&A to be in the $5.5-$7 million range per
        quarter in 2001.
     -- Shares outstanding:  Vertex's assumptions for weighted average number
        of shares outstanding are approximately 60 million for the second
        quarter, building to approximately 61 million for year-end 2001.
     -- Cash, cash equivalents and marketable securities:  Vertex expects to
        have in the range of $595-$600 million in cash, cash equivalents and
        marketable securities at the end of 2001.
 
     About Vertex
     Vertex Pharmaceuticals Incorporated is a global biotechnology company.
 Vertex seeks to discover, develop, and commercialize major pharmaceutical
 products independently and with partners.  Chemogenomics, the Company's
 proprietary, systematic, genomics-based platform, is designed to accelerate
 the discovery of new drugs and to expand intellectual property coverage of
 drug candidate compounds and classes of related compounds.  This approach,
 which targets gene families, has formed the basis for several commercial
 collaborations that retain rights to downstream revenue for Vertex.  Vertex
 currently has one product on the market-an HIV protease inhibitor-and 12
 products in development.
     This press release contains forward-looking statements.  While management
 makes its best efforts to be accurate in making forward-looking statements,
 such statements are subject to risks and uncertainties that could cause
 Vertex's actual results to vary materially.  These risks and uncertainties
 include, among other things, the levels and timing of payments under our
 collaborative agreements, uncertainties related to the timing of clinical
 trials, uncertainties relating to Vertex's ability to successfully discover,
 develop, test, secure regulatory approval of and finance any of its current or
 future drug candidates, uncertainties about     Vertex's ability to obtain new
 corporate collaborations and acquire new technologies on satisfactory terms,
 if at all, and the risk that Vertex or its partners will not be able to
 successfully commercialize the products developed from Vertex research.
 Vertex disclaims any intention or obligation to update or revise any forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
     Conference Call and Webcasts:  Q1 Financial Results and Investor Day
 Vertex Pharmaceuticals will host a conference call on April 24, 2001 at 10:00
 a.m. ET to review financial results and recent developments.  This call will
 be broadcast via the Internet at www.vrtx.com in the investor center.
     Vertex Pharmaceuticals will webcast its presentations at the Company's
 Investor Day on May 31, 2001.  The webcast will be available on the Company's
 website, www.vrtx.com, in the investor center.
     Agenerase(R) is a registered trademark of the GlaxoSmithKline group of
 companies.
     Prozei(TM) is a registered trademark of Kissei Pharmaceutical Co., Ltd.
 
                      Vertex Pharmaceuticals Incorporated
                           2001 First-Quarter Results
                   Consolidated Statement of Operations Data
                    (In thousands, except per share amounts)
 
 
                                                 Three Months    Three Months
                                              Ended March 31, Ended March 31,
                                                      2001            2000
                                                            (unaudited)
 
     Revenues:
      Royalties and product sales                      $2,513         $2,619
      Collaborative and other
       research and development                        16,544          5,513
 
                      Total revenues                   19,057          8,132
 
     Costs and expenses:
      Royalties and product costs                         837            872
      Research and development                         26,119         18,604
      Sales, general & administrative                   7,496          6,577
      Other income, net                               (6,525)        (2,371)
 
                      Total costs and expenses         27,927         23,682
 
     Cumulative effect of change
      in accounting principle (Note 1)
                                                           --        (3,161)
 
     Net loss                                        ($8,870)      ($18,711)
 
     Basic and diluted net operating
      loss per share                                  ($0.15)        ($0.36)
 
     Basic and diluted weighted average
      number of common shares outstanding (Note 2)     60,011         51,928
 
     Note 1:  The cumulative effect of change in accounting principle is a one-
 time non-cash charge relating to Vertex's adoption of SAB 101.  SAB 101 was
 issued by the Securities and Exchange Commission ("SEC") in December 1999.
 SAB 101 provides guidance related to revenue recognition policies based on
 interpretations and practices followed by the SEC.  The impact of Vertex's
 adoption of SAB 101 was to defer revenue recognition for certain portions of
 revenue previously recognized by Vertex under its collaborative agreements
 into future accounting periods.
     Note 2:  Shares used in computing basic and diluted net loss per share
 have been restated to give effect to the August 23, 2000 two-for-one stock
 split.
 
                      Vertex Pharmaceuticals Incorporated
                           2001 First-Quarter Results
 
                   Condensed Consolidated Balance Sheet Data
                                 (In thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (unaudited)
 
 
     Assets
 
     Cash and cash equivalents                       $222,662       $322,090
     Short-term investments                           100,674         66,509
     Other current assets                               9,942         14,587
         Total current assets                        $333,278       $403,186
 
     Long-term investments                            361,535        318,825
     Property, plant and equipment, net                36,063         28,149
     Other noncurrent assets                           38,668         22,721
         Total Assets                                $769,544       $772,881
 
 
     Liabilities and Equity
 
     Current liabilities                              $31,872        $38,671
     Long-term obligations                            346,966        347,313
     Stockholders' equity                             390,706        386,897
 
         Total Liabilities and Equity                $769,544       $772,881
 
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SOURCE Vertex Pharmaceuticals Incorporated
    CAMBRIDGE, Mass., April 24 /PRNewswire Interactive News Release/ -- Vertex
 Pharmaceuticals Incorporated (Nasdaq:   VRTX) reported financial results today
 for the three months ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000119/VERTEXLOGO)
     For the quarter ending March 31, 2001, the Company's net loss was
 $8,870,000, or $0.15 per basic and diluted share.  This compares to a net loss
 of $18,711,000, or $0.36 per basic and diluted share, including a one-time,
 non-cash charge of $3.2 million related to the cumulative effect of a change
 in accounting principle, for the quarter ending March 31, 2000.  Total
 revenues were $19,057,000 for the quarter ending March 31, 2001, as compared
 to $8,132,000 for the quarter ending March 31, 2000.  First-quarter 2001
 revenues primarily consisted of revenue earned under collaborative agreements
 as well as royalty revenue from Agenerase(R) (amprenavir).  The revenue earned
 under collaborative agreements included research and development support as
 well as a $1 million milestone payment from Kissei Pharmaceutical Co., Ltd.
 for the completion of clinical development of Prozei(TM) (amprenavir) in
 Japan.  For the quarter ending March 31, 2001, Vertex's royalty and product
 sales revenue of $2,513,000 was based on estimated worldwide sales of
 Agenerase by GlaxoSmithKline of approximately $16.8 million.  Vertex's total
 costs and expenses for the quarter ended March 31, 2001 were $27,927,000,
 compared with $23,682,000 for the quarter ended March 31, 2000.
     As of March 31, 2001, Vertex had approximately $684,871,000 in cash, cash
 equivalents and investments.
     Vertex's financial results fluctuate from quarter to quarter based on the
 timing of product revenues, partnership payments, and drug development
 expenses.  Financial results for 2000 and 2001 reflect the adoption of SAB 101
 retroactive to January 1, 2000.
     "In the first quarter of 2001, we continued to make clear progress on the
 clinical front," stated Joshua Boger, Ph.D., Chairman and CEO of Vertex
 Pharmaceuticals.  "In Vertex-driven programs, we initiated a Phase II clinical
 trial with VX-745, our p38 MAP kinase inhibitor, in patients with rheumatoid
 arthritis.  We also completed a Phase II clinical trial of merimempodib (VX-
 497), our IMPDH inhibitor for the treatment of hepatitis C virus, in
 combination with interferon alpha.  Based on the preliminary data from this
 clinical trial, we have begun designing subsequent clinical trials of
 merimempodib in patients with hepatitis C."
     Dr. Boger continued, "In our collaborative programs, GlaxoSmithKline
 recently began the third Phase III clinical trial of GW433908 (VX-175), a
 prodrug of the HIV protease inhibitor amprenavir, and Aventis began an
 expanded Phase II clinical trial of pralnacasan (VX-740), our caspase-1 (IL-1
 beta converting enzyme (ICE)) inhibitor in development for the treatment of
 rheumatoid arthritis.  During the quarter, Vertex initiated a clinical study
 with a novel trial design of timcodar, our lead drug candidate in our
 neurophilin ligand program for the treatment of peripheral neuropathy."
     Dr. Boger continued, "As we near the one-year anniversary of the signing
 of our collaboration with Novartis, we are pleased with our progress as we
 have ramped up our chemogenomics platform targeting the kinase family.  Our
 parallel drug discovery platform is performing as we envisioned it would,
 hiring is on plan, and we are on track to select one or more kinase inhibitors
 for preclinical development this year.  In addition, we know that
 chemogenomics is scalable into other multi-target gene families of interest,
 and we believe that the broader application of our strategy could create
 significant new product and alliance opportunities."
     Dr. Boger concluded, "Looking ahead, advancing our pipeline and scaling
 our chemogenomics efforts into additional gene families will be key drivers
 for Vertex.  We intend to pursue the acquisition of technologies, capabilities
 and products that could accelerate our drug discovery and development
 processes, with the goal of further enhancing our productivity."
 
     Pipeline Update
     Vertex-driven Programs
     P38 MAP Kinase Program:  VX-745
     -- In January 2001, Vertex began a dose-ranging multi-center, double-
        blinded, placebo-controlled Phase II clinical trial with VX-745 in
        patients with rheumatoid arthritis.  Vertex is taking this compound
        forward through clinical development with its Far East partner, Kissei.
        Vertex retains U.S. and European commercial rights to VX-745.
 
     IMPDH Program:  Merimempodib (VX-497) and VX-148
     -- Vertex completed a preliminary analysis of a Phase II clinical trial of
        merimempodib (VX-497) in combination with interferon alpha in patients
        with hepatitis C.  Based on this data, the Company is planning longer
        duration studies of merimempodib, which will likely be conducted in
        combination with the new long-lasting pegylated interferon products.
        Merimempodib is an IMPDH inhibitor in development by Vertex for the
        treatment of hepatitis C.  Vertex retains worldwide commercial rights
        to merimempodib.
     -- Vertex began a Phase I clinical trial of VX-148 in the fourth quarter
        of 2000.  VX-148 is an IMPDH inhibitor in development by Vertex for the
        treatment of viral infections and autoimmune diseases.  The Company
        expects to complete this study by mid-2001.
 
     Vertex has 12 drug candidates in development to treat viral diseases,
 inflammation, cancer, autoimmune diseases and neurological disorders.  The
 Company forms strategic collaborations with pharmaceutical partners to
 maximize the full potential of its broad product pipeline and to balance the
 risk and reward of developing and commercializing its product portfolio.  The
 Company has nine collaborations with major pharmaceutical companies which
 provide for a potential $1.4 billion in pre-commercial payments to Vertex.
 
     Collaborative Programs
     HIV Protease Program:  Agenerase and GW433908 (VX-175)
     -- Agenerase is an HIV protease inhibitor discovered by Vertex and
        licensed for development and commercialization to GlaxoSmithKline
        (GSK).  The worldwide presence of Agenerase continues to expand.  The
        drug has recently been approved in Canada and Australia and launched in
        Spain and Italy and now is approved in 33 countries worldwide.
     -- GW433908 is an HIV protease inhibitor discovered by the joint research
        collaboration between GlaxoSmithKline (GSK) and Vertex and licensed by
        GSK.  Recently, GSK began a third Phase III clinical trial of GW433908
        (VX-175) in treatment-experienced patients.  In this randomized, open-
        label trial, GW433908 will be dosed as either 700 mg (one tablet) twice
        daily in combination with 100 mg of the protease inhibitor ritonavir,
        or as 1400 mg (two tablets) once daily in combination with 200 mg
        ritonavir, and will be compared to a third treatment arm of 400 mg
        lopinavir/100 mg ritonavir dosed twice daily.  Two other pivotal trials
        of GW433908 are already underway.  GW433908 is a prodrug of the HIV
        protease inhibitor amprenavir.  If the Phase III program meets its
        objectives, GSK intends to file a New Drug Application (NDA) for
        GW433908 in 2002.
 
     ICE (Caspase-1) Program:  Pralnacasan (VX-740)
     -- Pralnacasan (VX-740) is a caspase-1 (IL-1 beta converting enzyme (ICE))
        inhibitor in development with Vertex's worldwide partner, Aventis.
        Aventis began a Phase II clinical trial of pralnacasan in the first
        quarter of 2001.    The study is a 12-week double-blind, randomized,
        placebo-controlled study in which patients will receive pralnacasan or
        placebo.  Approximately 250 adult patients with active rheumatoid
        arthritis will be enrolled in the study and have the option of a 12-
        week extension of treatment.  Vertex expects to provide an update on
        the next steps for this development program in the first half of 2002.
 
     -- On the intellectual property front, Vertex was granted United States
        Patent No. 6,204,261, which covers a wide variety of compounds useful
        as ICE inhibitors, on March 20, 2001.  The patent covers pralnacasan
        specifically as well as related compounds.  It also covers
        pharmaceutical compositions which contain pralnacasan or related
        compounds.
 
     Neurophilin Ligand Program:  Timcodar
     -- Vertex is continuing clinical development of timcodar, the Company's
        lead drug candidate in its neurophilin program.  In January 2001,
        Vertex began a clinical study with a novel trial design.  This trial is
        designed to assess the activity of timcodar in a novel clinical
        paradigm.  The Company has completed enrollment in this study and
        expects to provide additional information on this clinical program in
        the second half of 2001.
 
     Year 2001 Financial Outlook
     This section contains forward-looking guidance about Vertex's financial
 outlook in 2001.
     -- Vertex's net operating loss for the first quarter of 2001 was lower
        than planned.  This is due primarily to the timing of a planned ramp-up
        in research and development spending.  The Company expects research and
        development expenses to accelerate through 2001.
     -- Net operating loss:  Vertex expects that net operating loss for the
        full year of 2001 will be in the range of $60-$65 million.  While the
        Company will be making significant investments in R&D, it will continue
        to focus on managing its expenses prudently.
     -- Collaborative and other research and development revenue:  For 2001,
        Vertex anticipates that collaborative revenue will be in the range of
        $19-$22 million per quarter.  Collaborative revenue will continue to
        fluctuate based on levels of research and development support as well
        as potential revenue from milestone payments and potential revenue from
        possible new deals.
     -- Royalties and product sales:  Based on current sales trends, Vertex
        assumes that Agenerase royalties will be in the range of $13.50-$14.25
        million based on worldwide sales of $90-$95 million for the full year
        of 2001.  Agenerase, an HIV protease inhibitor, is Vertex's first
        marketed product.
     -- Other income, net:  The Company anticipates that other income, net,
        will be approximately $5-$5.5 million per quarter in 2001.
     -- R&D costs and expenses:  Vertex anticipates that research and
        development costs and expenses for 2001 will be in the mid $30 million
        to low $40 million range per quarter.  The Company's R&D expenditures
        will be higher than historical levels as a result of the Company's
        commitment to make significant investments in its research organization
        and in its industry-leading product pipeline.
     -- SG&A:  The Company expects SG&A to be in the $5.5-$7 million range per
        quarter in 2001.
     -- Shares outstanding:  Vertex's assumptions for weighted average number
        of shares outstanding are approximately 60 million for the second
        quarter, building to approximately 61 million for year-end 2001.
     -- Cash, cash equivalents and marketable securities:  Vertex expects to
        have in the range of $595-$600 million in cash, cash equivalents and
        marketable securities at the end of 2001.
 
     About Vertex
     Vertex Pharmaceuticals Incorporated is a global biotechnology company.
 Vertex seeks to discover, develop, and commercialize major pharmaceutical
 products independently and with partners.  Chemogenomics, the Company's
 proprietary, systematic, genomics-based platform, is designed to accelerate
 the discovery of new drugs and to expand intellectual property coverage of
 drug candidate compounds and classes of related compounds.  This approach,
 which targets gene families, has formed the basis for several commercial
 collaborations that retain rights to downstream revenue for Vertex.  Vertex
 currently has one product on the market-an HIV protease inhibitor-and 12
 products in development.
     This press release contains forward-looking statements.  While management
 makes its best efforts to be accurate in making forward-looking statements,
 such statements are subject to risks and uncertainties that could cause
 Vertex's actual results to vary materially.  These risks and uncertainties
 include, among other things, the levels and timing of payments under our
 collaborative agreements, uncertainties related to the timing of clinical
 trials, uncertainties relating to Vertex's ability to successfully discover,
 develop, test, secure regulatory approval of and finance any of its current or
 future drug candidates, uncertainties about     Vertex's ability to obtain new
 corporate collaborations and acquire new technologies on satisfactory terms,
 if at all, and the risk that Vertex or its partners will not be able to
 successfully commercialize the products developed from Vertex research.
 Vertex disclaims any intention or obligation to update or revise any forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
     Conference Call and Webcasts:  Q1 Financial Results and Investor Day
 Vertex Pharmaceuticals will host a conference call on April 24, 2001 at 10:00
 a.m. ET to review financial results and recent developments.  This call will
 be broadcast via the Internet at www.vrtx.com in the investor center.
     Vertex Pharmaceuticals will webcast its presentations at the Company's
 Investor Day on May 31, 2001.  The webcast will be available on the Company's
 website, www.vrtx.com, in the investor center.
     Agenerase(R) is a registered trademark of the GlaxoSmithKline group of
 companies.
     Prozei(TM) is a registered trademark of Kissei Pharmaceutical Co., Ltd.
 
                      Vertex Pharmaceuticals Incorporated
                           2001 First-Quarter Results
                   Consolidated Statement of Operations Data
                    (In thousands, except per share amounts)
 
 
                                                 Three Months    Three Months
                                              Ended March 31, Ended March 31,
                                                      2001            2000
                                                            (unaudited)
 
     Revenues:
      Royalties and product sales                      $2,513         $2,619
      Collaborative and other
       research and development                        16,544          5,513
 
                      Total revenues                   19,057          8,132
 
     Costs and expenses:
      Royalties and product costs                         837            872
      Research and development                         26,119         18,604
      Sales, general & administrative                   7,496          6,577
      Other income, net                               (6,525)        (2,371)
 
                      Total costs and expenses         27,927         23,682
 
     Cumulative effect of change
      in accounting principle (Note 1)
                                                           --        (3,161)
 
     Net loss                                        ($8,870)      ($18,711)
 
     Basic and diluted net operating
      loss per share                                  ($0.15)        ($0.36)
 
     Basic and diluted weighted average
      number of common shares outstanding (Note 2)     60,011         51,928
 
     Note 1:  The cumulative effect of change in accounting principle is a one-
 time non-cash charge relating to Vertex's adoption of SAB 101.  SAB 101 was
 issued by the Securities and Exchange Commission ("SEC") in December 1999.
 SAB 101 provides guidance related to revenue recognition policies based on
 interpretations and practices followed by the SEC.  The impact of Vertex's
 adoption of SAB 101 was to defer revenue recognition for certain portions of
 revenue previously recognized by Vertex under its collaborative agreements
 into future accounting periods.
     Note 2:  Shares used in computing basic and diluted net loss per share
 have been restated to give effect to the August 23, 2000 two-for-one stock
 split.
 
                      Vertex Pharmaceuticals Incorporated
                           2001 First-Quarter Results
 
                   Condensed Consolidated Balance Sheet Data
                                 (In thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (unaudited)
 
 
     Assets
 
     Cash and cash equivalents                       $222,662       $322,090
     Short-term investments                           100,674         66,509
     Other current assets                               9,942         14,587
         Total current assets                        $333,278       $403,186
 
     Long-term investments                            361,535        318,825
     Property, plant and equipment, net                36,063         28,149
     Other noncurrent assets                           38,668         22,721
         Total Assets                                $769,544       $772,881
 
 
     Liabilities and Equity
 
     Current liabilities                              $31,872        $38,671
     Long-term obligations                            346,966        347,313
     Stockholders' equity                             390,706        386,897
 
         Total Liabilities and Equity                $769,544       $772,881
 
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 SOURCE  Vertex Pharmaceuticals Incorporated

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