Quarterly Financial Data (unaudited)

The following table sets forth the Company’s quarterly financial data for the two years ended December 31, 2016.



	Three Months Ended
	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	394,410		$	425,651		$	409,689		$	453,882
Royalty revenues	3,596			5,282			3,835			3,887
Collaborative revenues	74			675			259			937
Total revenues	398,080			431,608			413,783			458,706
Costs and expenses:
Cost of product revenues	49,789			44,154			53,222			59,646
Royalty expenses	860			1,098			855			836
Research and development expenses (1)	255,860			271,008			272,370			248,452
Sales, general and administrative expenses	105,214			111,652			106,055			109,908
Restructuring expenses	687			343			8			224
Total costs and expenses	412,410			428,255			432,510			419,066
(Loss) income from operations	(14,330		)	3,353			(18,727		)	39,640
Interest expense, net	(20,698		)	(20,155		)	(20,140		)	(20,439		)
Other income (expense), net	4,411			(1,219		)	(167		)	1,105
(Loss) income before provision for income taxes	(30,617		)	(18,021		)	(39,034		)	20,306
Provision for (benefit from) income taxes	5,485			18,130			503			(7,453		)
Net (loss) income	(36,102		)	(36,151		)	(39,537		)	27,759
(Income) loss attributable to noncontrolling interest	(5,529		)	(28,374		)	696			5,186
Net (loss) income attributable to Vertex	$	(41,631	)	$	(64,525	)	$	(38,841	)	$	32,945

Amounts per share attributable to Vertex common shareholders:
Net (loss) income:
Basic	$	(0.17	)	$	(0.26	)	$	(0.16	)	$	0.13
Diluted	$	(0.17	)	$	(0.26	)	$	(0.16	)	$	0.13
Shares used in per share calculations:
Basic	243,831			244,482			244,920			245,454
Diluted	243,831			244,482			244,920			247,757



	Three Months Ended
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	130,875		$	160,388		$	302,511		$	406,550
Royalty revenues	6,792			5,077			5,759			6,331
Collaborative revenues	842			611			1,546			5,054
Total revenues	138,509			166,076			309,816			417,935
Costs and expenses:
Cost of product revenues	9,381			15,409			30,269			62,092
Royalty expenses	2,926			1,451			1,691			1,293
Research and development expenses (2)	215,599			223,858			246,284			310,181
Sales, general and administrative expenses	85,860			94,394			99,772			96,549
Restructuring (income) expenses	(3,272		)	2,128			1,826			1,524
Total costs and expenses	310,494			337,240			379,842			471,639
Loss from operations	(171,985		)	(171,164		)	(70,026		)	(53,704		)
Interest expense, net	(21,307		)	(21,111		)	(21,134		)	(20,654		)
Other (expense) income, net	(5,113		)	1,414			(1,326		)	(1,690		)
Loss before provision for (benefit from) income taxes	(198,405		)	(190,861		)	(92,486		)	(76,048		)
Provision for (benefit from) income taxes	299			30,131			1,330			(1,379		)
Net loss	(198,704		)	(220,992		)	(93,816		)	(74,669		)
Loss (income) attributable to noncontrolling interest	98			32,144			(1,333		)	938
Net loss attributable to Vertex	$	(198,606	)	$	(188,848	)	$	(95,149	)	$	(73,731	)

Amounts per share attributable to Vertex common shareholders:
Net loss:
Basic and diluted	$	(0.83	)	$	(0.78	)	$	(0.39	)	$	(0.30	)
Shares used in per share calculations:
Basic and diluted	239,493			240,757			241,969			242,987


1.	In the second quarter of 2016, the Company incurred research and development expenses of approximately $10.0 million to acquire certain early-stage research assets. In the third quarter of 2016, the Company incurred research and development expenses related to a $20.0 million upfront payment to Moderna Therapeutics, Inc. See Note B, “Collaborative Arrangements,” for further information.


2.	In the fourth quarter of 2015, the Company made a $75.0 million upfront payment to CRISPR Therapeutics in connection with the collaboration, which was recorded as a research and development expense. See Note B, “Collaborative Arrangements,” for further information.