Quarterly Financial Data (unaudited)



	Three Months Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	267,381		$	254,789		$	186,653		$	128,822
Royalty revenues	43,573			49,120			27,012			36,887
Collaborative revenues (1)	17,414			6,841			8,035			185,448
Total revenues	328,368			310,750			221,700			351,157
Costs and expenses:
Cost of product revenues (2)	30,955			24,695			20,048			13,281
Royalty expenses	11,788			13,236			7,291			8,983
Research and development expenses	218,095			222,455			228,624			249,609
Sales, general and administrative expenses	92,879			106,521			87,754			75,188
Restructuring expenses	39			776			12,048			27,658
Intangible asset impairment charges (3)(4)	412,900			—			—			250,600
Total costs and expenses	766,656			367,683			355,765			625,319
Loss from operations	(438,288		)	(56,933		)	(134,065		)	(274,162		)
Interest expense, net	(3,465		)	(6,551		)	(95		)	(12,619		)
Other income (expense), net (4)	(1,187		)	(27		)	4,747			(53,472		)
Loss before benefit from income taxes	(442,940		)	(63,511		)	(129,413		)	(340,253		)
Benefit from income taxes (3)(4)	(130,313		)	(1,799		)	(751		)	(155,704		)
Net loss	(312,627		)	(61,712		)	(128,662		)	(184,549		)
Net loss attributable to noncontrolling interest (Alios)	4,611			4,547			4,530			228,834
Net income (loss) attributable to Vertex	$	(308,016	)	$	(57,165	)	$	(124,132	)	$	44,285
Net income (loss) per share attributable to Vertex common shareholders:
Basic	$	(1.43	)	$	(0.26	)	$	(0.54	)	$	0.19
Diluted	$	(1.43	)	$	(0.26	)	$	(0.54	)	$	0.19
Shares used in per share calculations:
Basic	215,421			222,053			230,505			231,264
Diluted	215,421			222,053			230,505			235,717



	Three Months Ended
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	375,375		$	373,273		$	303,501		$	281,309
Royalty revenues	38,981			33,480			25,586			43,451
Collaborative revenues	24,381			11,552			6,919			9,234
Total revenues	438,737			418,305			336,006			333,994
Costs and expenses:
Cost of product revenues (2)	25,918			104,549			30,680			75,595
Royalty expenses	13,293			9,874			7,856			12,120
Research and development expenses	196,371			196,544			200,161			213,109
Sales, general and administrative expenses	111,146			117,514			97,684			110,452
Restructuring expenses	360			594			696			194
Intangible asset impairment charge	—			—			—			—
Total costs and expenses	347,088			429,075			337,077			411,470
Income (loss) from operations	91,649			(10,770		)	(1,071		)	(77,476		)
Interest expense, net	(3,891		)	(3,814		)	(4,054		)	(3,263		)
Other income (expense), net	150			179			13			(33		)
Income (loss) before provision for (benefit from) income taxes	87,908			(14,405		)	(5,112		)	(80,772		)
Provision for (benefit from) income taxes	32			20,063			21,355			(2,696		)
Net income (loss)	87,876			(34,468		)	(26,467		)	(78,076		)
Net loss (income) attributable to noncontrolling interest (Alios)	3,714			(30,463		)	(31,076		)	1,928
Net income (loss) attributable to Vertex	$	91,590		$	(64,931	)	$	(57,543	)	$	(76,148	)
Net income (loss) per share attributable to Vertex common shareholders:
Basic	$	0.44		$	(0.31	)	$	(0.27	)	$	(0.35	)
Diluted	$	0.43		$	(0.31	)	$	(0.27	)	$	(0.35	)
Shares used in per share calculations:
Basic	208,018			211,344			213,767			214,607
Diluted	219,264			211,344			213,767			214,607


1.	During the fourth quarter of 2013, the Company recorded $182.4 million of collaborative revenue related to its Janssen collaboration, which was primarily attributable to an amendment to its collaboration agreement with Janssen. See Note B, "Collaborative Arrangements," for further information.


2.	During 2013 and 2012, the Company recorded within cost of product revenues lower-of-cost or market charges for excess or obsolete inventories. See Note G, "Inventories," for further information.


3.	During the first quarter of 2013, the Company recorded a $412.9 million intangible asset impairment charge related to its VX-222 indefinite-lived in-process research and development asset. In connection with this impairment charge, the Company recorded a credit of $127.6 million in its provision for income taxes. See Note J, "Intangible Assets and Goodwill," for further information.

During the fourth quarter of 2013, the Company deconsolidated Alios, which included certain charges related to deconsolidation recorded in other income (expense), net, and was preceded by a $250.6 million intangible asset impairment charge related to the HCV nucleotide analogue program indefinite-lived in-process research and development asset. In connection with this impairment charge, a credit of $102.1 million was recorded to the provision for income taxes attributable to Alios. See Note B, "Collaborative Arrangements," and Note J, "Intangible Assets and Goodwill," for further information.