Vertex Pharmaceuticals, Inc.
Group II, 10-Page Submission
October 6, 2014
Group II
Oluwatosin Akinyinka
Nupur Deshpande
Kimbell Duncan
TOSIN AKINYINKA------------------------------------------------------------------------------------------------------------------------
Part I: Corporate Structure
Vertex Pharmaceuticals, Inc. (VTRX, Nasdaq) is the ultimate biotechnology company.
Since it was founded 25 years ago, Vertex has spent over $7 billion on research and development and has accumulated net earnings losses of over $4 billion. Management has provided revenue guidance for FY2014 in the range of $500 to 550 million, its lead drug platform targets an orphan disease with a maximum of 70,000 patients worldwide, and, at current market prices, it has a market cap over $22 billion. This is a very compelling story.
History
Dr. Joshua Boger founded Vertex Pharmaceuticals in 1989 with $6 million in venture capital and an ambition to create a new kind of pharmaceutical company. He had spent more than a decade at Merck becoming disillusioned with the prospect that most of his medicines would never make it to the patient. Thus, he left Merck, founded Vertex with the simple aim of improving the lives of people living with serious, life-threatening diseasesi. Mr Boger remains a director on the Board, having retired as Chief Executive Officer in 2009.
Data Source: Bloomberg
Major events and milestones for Vertex since it’s founding include:
July 1991: VRTX started trading at $9/share on the NASDAQ, July 24.
Oct 1996: The protease crystal structure for the Hepatitis C virus was published in Cell by Vertex scientists.
Dec 1999: An HIV protease inhibitor co-developed with GlaxoSmithKline was approved by the FDA.
July 2001: Vertex acquired Aurora Biosciences and established its San Diego R & D site.
June 2003: R&D restructuring to concentrate on antiviral and anti-inflammatory drug candidates
Nov 2005: Second HIV protease inhibitor co-developed by GlaxoSmithKline was approved by the FDA.
June 2006: Vertex signed a collaboration with Johnson and Johnson on Hepatitis C.
2007: Vertex conducted clinical development of oral medicines targeting cystic fibrosis.
Nov 2010: Vertex completed its first New Drug Application to the FDA (IncivekTM).
May 2011: IncivekTM, Vertex’s first medicine was approved by the FDA.
Jan 2012: Vertex received FDA approval for its second medicine, KalydecoTM.
Oct 2013: R&D restructuring as a result of a decline in the sales of the company’s Hepatitis C drug, IncivekTM.
2013: Vertex conducted an international Phase III trial to evaluate the ivacaftor-lumacaftor combination therapy.
June 2014: Vertex released results of its Phase III clinical trials of the ivacaftor-lumacaftor combination therapy.
Board of Directors
On Vertex Pharmaceutical’s Board of Directors are: Jeffrey M. Leiden, M.D., Ph.D. (Chairman, Chief Executive Officer and President); Stuart A. Arbuckle, B.S. (Executive Vice President and Chief Commercial Officer); Kenneth L. Horton, J.D. (Executive Vice President and Chief Legal Officer); Peter Mueller, Ph.D. (Executive Vice President, Global Research and Development, and Chief Scientific Officer); Ian F. Smith, B.A., MBA (Executive Vice President and Chief Financial Officer); Thomas Connolly, M.S, MHA, MBA. (Senior Vice President, Human Resources); Megan Pace, B.A (Senior Vice President, Corporate Communications); Amit K. Sachdev, J.D. (Senior Vice President, Global Government Strategy, Market Access and Value); Paul M. Silva, MBA (Senior Vice President and Corporate Controller); David Altshuler, M.D., Ph.D. (Director); Joshua S. Boger, Ph.D. (Director); Terrence C. Kearney, MBA (Director); Yuchun Lee, MBA (Director); Margaret G. McGlynn, MBA (Director); Wayne J. Riley, M.D. (Director); Bruce I. Sachs, MBA (Director); Elaine S. Ullian, MPH (Director)ii.
The Scientific Advisory Board includes: Vicki L. Sato, Ph. D (Senior Vice President of Research and
