Wednesday, May 30, 2012

VRTX: "Oopsie!"

Uh-oh. VRTX's recent CF data (previously covered here) isn't as positive as the company announced three weeks ago. VRTX stock lost $1.5B in value as a result, but that's only half the story, as VRTX is going to be sued out the wazoo by shareholders who bought this month and aren't in the money.

The consequence for poor reporting of results has been set in the finance industry - if you mis-report your quarterly or annual financials or otherwise deceive the shareholders, someone (the CFO) gets booted. It's a bit different with scientific data as in this case, but at a minimum, I'd like to see Vertex's Chairman/CEO/President Jeff Leiden relinquish his Chairman and/or his President title - this episode suggests that more oversight is needed up there in Cambridge, MA.

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