LOS ANGELES, Sept 30 (Reuters) - Vertex Pharmaceuticals Inc , expecting a wider net loss for the year, said it will receive $155 million secured by potential future milestone payments related to its experimental hepatitis drug.
Vertex said on Wednesday it now expects an adjusted loss for the year of about $535 million, or $650 million on a net basis. In August, it had projected an full-year net loss of $515 million.
The company attributed the outlook to a decision to retain experimental rheumatoid arthritis drug VX-509 for mid-stage testing, as well as an estimated $115 million in restructuring expenses, acquisition-related expenses, executive transition expenses, stock-based compensation costs and a loss on exchange of convertible subordinated notes.
The company said it expects to receive $120 million in cash from the issuance of $155 million in notes secured by future milestone payments for telaprevir, the experimental hepatitis C drug. Another $35 million will come from the sale of up to $95 million of European rights to milestone payments for the drug.
Vertex also said it received $105 million from Mitsubishi Tanabe Pharma Corp related to an amended agreement for development of telaprevir in Japan and certain Far East countries.
Vertex said it expects to end the year with $800 million in cash, cash equivalents and marketable securities.
(Reporting by Deena Beasley; Editing by Tim Dobbyn) Keywords: VERTEX/ (deena.beasley@thomsonreuters.com; 1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Vertex said on Wednesday it now expects an adjusted loss for the year of about $535 million, or $650 million on a net basis. In August, it had projected an full-year net loss of $515 million.
The company attributed the outlook to a decision to retain experimental rheumatoid arthritis drug VX-509 for mid-stage testing, as well as an estimated $115 million in restructuring expenses, acquisition-related expenses, executive transition expenses, stock-based compensation costs and a loss on exchange of convertible subordinated notes.
The company said it expects to receive $120 million in cash from the issuance of $155 million in notes secured by future milestone payments for telaprevir, the experimental hepatitis C drug. Another $35 million will come from the sale of up to $95 million of European rights to milestone payments for the drug.
Vertex also said it received $105 million from Mitsubishi Tanabe Pharma Corp related to an amended agreement for development of telaprevir in Japan and certain Far East countries.
Vertex said it expects to end the year with $800 million in cash, cash equivalents and marketable securities.
(Reporting by Deena Beasley; Editing by Tim Dobbyn) Keywords: VERTEX/ (deena.beasley@thomsonreuters.com; 1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
