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Vertex Pharmaceuticals Incorporated (VRTX)
Q4 2011 Earnings Call
February 2, 2012 5:00 PM ET
Michael Partridge – Senior Director of Strategic Communications
Jeff Leiden – President and CEO
Ian Smith – EVP and CFO
Peter Mueller – EVP, Global Research and Development, and Chief Scientific Officer
Robert Kauffman – Chief Medical Officer
Nancy Wysenski – EVP and Chief Commercial Officer
Geoffrey Porges – Bernstein
Terence Flynn – Goldman Sachs
Rachel McMinn – Bank of America Merrill Lynch
Michael Ulz – JPMorgan
Wesley Nurss – ISI
Gloria Woo – Citi
Howard Liang – Leerink Swann
Jason Kantor – RBC Capital Markets
Andrew Peters – UBS
Ted Tenthoff – Piper Jaffray
Matthew Andrews – Wells Fargo
Ying Huang – Barclays Capital
Liisa Bayko – JMP Securities
David Friedman – Morgan Stanley
Marko Kozul – ThinkEquity
Daniel Brims – Brean Murray
George Farmer – Canaccord
Previous Statements by VRTX
» Vertex Pharmaceuticals' CEO Presents at JPMorgan Global Healthcare Conference (Transcript)
» Vertex Pharmaceuticals at Credit Suisse 2011 Healthcare Conference Call Transcript
» Vertex Pharmaceuticals Incorporated's CEO Discusses Q3 2011 Results - Earnings Call Transcript
Now, I’ll turn the conference over to Michael Partridge. Please begin.
Good evening and welcome to Vertex’s 2011 financial results conference call. 2011 began a fulfillment of Vertex’s vision of improving patients’ lives with breakthrough medicines. As we look to 2012, we are focused on balancing the revenues we are generating with the breadth of investment required to drive continued innovation in our pipeline and generating significant earnings and cash flows.
With me today to review our 2011 accomplishments and outlook for 2012 are Dr. Jeff Leiden, who will kick off the call with an overview of our business focus for 2012, and Ian Smith, who will comment on selected year-end and fourth quarter 2011 financial results and 2012 financial guidance.
A press release announcing our fourth quarter and 2011 financial results and 2012 financial guidance has been issued. Please refer to this release for the primary line items within our income statement.
After our prepared remarks, we will be joined by Dr. Peter Mueller, Nancy Wysenski and Dr. Bob Kauffman, and we will be happy to take your questions. We will ask you to please limit your questions to one with a related follow-up. We’re stopping tonight’s call promptly at 6 PM, and for any questions after that, we will be in our offices to take your call.
Finally, let me note that information discussed on this conference call includes forward-looking statements, which are subject to the risks and uncertainties discussed in detail in our reports filed with the Securities and Exchange Commission, including our 10-K.
GAAP and non-GAAP financial measures will be discussed on this call. Information regarding our use of non-GAAP financial measures and a reconciliation of those measures to GAAP is available in our full-year 2011 financial results press release which is on our website. All 2010 and 2011 expenses discussed in this call exclude stock-based compensation expense, restructuring expense and any intangible asset impairment charges net of tax, any revenues and expenses related to certain September 2009 financial transactions, commercial milestone payments and items related to Vertex’s collaboration with Alios.
Thank you. And I will now turn the call over to Jeff.
Thanks, Michael. I joined Vertex just six weeks ago, and I am extremely pleased with the execution we are demonstrating across the business. On today’s call, I want to reiterate for you again what I said at the beginning of the year at the Annual JPMorgan Healthcare Conference and what I said two days ago, when we announced the approval of KALYDECO. And that is that Vertex is well-positioned to be a global business, to help many more patients with serious diseases and to continue to generate significant cash flows.
In less than a year, Vertex received approvals and launched two breakthrough medicines in different life-threatening diseases: INCIVEK for the treatment of hepatitis C and KALYDECO for the treatment of cystic fibrosis.
Looking ahead, we have a pipeline of eight other potential medicines and expect to generate proof of concept data for many of these programs throughout 2012. This is a very exciting and deep pipeline that gives us the opportunity to launch additional new medicines over the next few years that could deliver significant benefits to patients and their families, and significant value to Vertex and our shareholders.
Launching INCIVEK last year was a crucial turning point for Vertex and enabled us to demonstrate not only our research and development expertise, but also our ability to build a commercial team that flawlessly executed one of the most successful drug launches in the industry. Prior to launch, we anticipated strong demand for this medicine from people living with hepatitis C and the healthcare providers who treat them. But INCIVEK’s performance in the first seven months exceeded even those expectations. INCIVEK is now available in multiple countries including the U.S., Canada and nine countries in Europe. We believe this reflects the clinical benefits of the drug, and the outstanding work of our commercial organization.
Our fourth quarter and year-end 2011 results reflect the very rapid launch of INCIVEK and have created strong cash flow to enable investment in our late stage pipeline of medicines while also returning value to shareholders. Ian will review our financial results with you momentarily. As our hepatitis C commercial group remains keenly focused on INCIVEK’s launch, we are progressing efforts to sustain our leadership in hepatitis C for the long-term. We have a number of future opportunities in this disease including an all-oral regimen in Phase 2 and two novel nucleotide medicines which are now in Phase 1.