Vertex's P&L epiphany

Looking out the next few years, Vertex Pharmaceuticals Inc. saw that its plan to reach profitability was going to run headlong into a large ramp-up in development expenses related to its 2000 kinase deal with Novartis AG. Following last week's restructuring of the deal, VRTX believes it may have nipped this impending collision in the bud.

Under the original deal, VRTX had responsibility for early clinical development through biochemical proof-of-concept in humans, defined as late Phase I or early Phase II testing (see BioCentury, May 15, 2000). As amended, Novartis will be responsible for compounds starting in preclinical development...