Will Vertex’s Largest Investors Trim Holdings After Weak Trial Results?

2012 has been a strong year for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as shares are up 74.04 percent. However, today shares closed down over 10%. On Tuesday, the company cut success rates from the clinical trial of a new cystic-fibrosis treatment. This comes just three weeks after it reported stronger-than-expected results in the identical trial, increasing hopes that the treatment would have a high sales potential, reported The Wall Street Journal.

Shares fell 20% in early trading on Tuesday after Vertex reported 35% of the patients who received a combined therapy underwent lung function improvement of at least five percentage points; this is down from April’s initial 46% number. In addition, the trial also saw 19% of patients experiencing a 10-percentage-point improvement or higher; initial reports had the number below 30%.

Chairman and Chief Executive Jeffrey Leiden said in a conference to analysts that the differences came from a third-party vendor’s data misinterpretation. In addition, from Vertex’s April release, it looked at patients’ improvement rates compared to a placebo as opposed to reporting improvements from an absolute basis.

With the less favorable results in the trial report, will Vertex’s largest shareholders cut their holdings? 410 institutional firms indicated owning shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in Q1 2012. These firms reported owning a total of 394.069 million shares on 03/31/2012. The shares closed at $41.01 on 03/31/2012.

Here are the ten largest positions in Vertex Pharmaceuticals Incorporated at the end of March 31st, 2012.

Lord Abbett & Co. LLC held 36,586,000 shares on 03/31/2012 worth $42,119,633. This brought the portfolio total to 0.09%.

Pioneer Investment Management Inc held 34,000,000 shares on 03/31/2012 worth $38,972,000. This brought the portfolio total to 0.16%.

Invesco Ltd. held 33,740,000 shares on 03/31/2012 worth $38,674,000. This brought the portfolio total to 0.02%.

Janus Capital Management LLC held 25,000,000 shares on 03/31/2012 worth $28,656,000. This brought the portfolio total to 0.03%.

Fmr LLC held 14,081,710 shares on 03/31/2012 worth $577,490,903. This brought the portfolio total to 0.1%.

Jennison Associates LLC held 11,607,707 shares on 03/31/2012 worth $476,032,045. This brought the portfolio total to 0.57%.

Palisade Capital Management LLC/NJ held 11,500,000 shares on 03/31/2012 worth $13,195,000. This brought the portfolio total to 0.42%.

Janus Capital Management LLC held 10,499,446 shares on 03/31/2012 worth $430,582,263. This brought the portfolio total to 0.45%.

Capital World Investors held 10,492,998 shares on 03/31/2012 worth $430,317,830. This brought the portfolio total to 0.15%.

Morgan Stanley held 9,952,000 shares on 03/31/2012 worth $11,407,000. This brought the portfolio total to 0.01%.

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