Filed pursuant to Rule 424(b)(3)
Registration No. 333-37794
PROSPECTUS SUPPLEMENT NO. 3 DATED NOVEMBER 20, 2001 TO THE
PROSPECTUS DATED MARCH 9, 2001 OF
VERTEX PHARMACEUTICALS INCORPORATED
This Prospectus Supplement No. 3 amends the information in the table under the
caption "Selling Holders" in the Prospectus dated March 9, 2001, as previously
amended, by deleting the information contained in the table regarding the
Selling Security Holders with respect to the principal amount of notes and
common stock of Vertex Pharmaceuticals Incorporated and substituting therefore
the following table:
PRINCIPAL AMOUNT OF NUMBER OF SHARES OF COMMON STOCK
NOTES BENEFICIALLY ISSUABLE UPON CONVERSION OF THE
NAME OF SECURITY HOLDER OWNED AND OFFERED (1) NOTES THAT MAY BE OFFERED
----------------------- --------------------- --------------------------------
AAM/Zazone Institutional Income Fund L.P. $ 850,000 9,213
AFTRA Health Fund $ 300,000 3,251
AIG/National Union Fire Insurance $ 975,000 10,567
Alexandra Global Investment Fund 1 Ltd $ 3,000,000 32,516
AllState Insurance Company $ 2,000,000 21,677
Alpine Associates $ 4,600,000 49,859
Alpine Partners, L.P. $ 700,000 7,587
American Motorist Insurance Company $ 763,000 8,270
Arapahoe County Colorado $ 75,000 812
Arkansas Teachers Retirement $ 5,850,000 63,407
Argent Classic Arbitrage fund (Bermuda) L.P. $ 4,400,000 47,691
Argent Classic Convertible Arbitrage Fund (Bermuda) L.P. $ 5,400,000 58,530
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Argent Classic Convertible Arbitrage Fund L.P. $ 1,600,000 17,342
Associated Electric & Gas Insurance Services Limited $ 400,000 4,335
Attorney's Title Insurance Fund, Inc. $ 500,000 5,419
Bank Austria Cayman Island, L $ 6,000,000 65,033
Baptist Health Southern Florida $ 367,000 3,977
Bear Stearns $ 5,000,000 54,195
BNP Cooper Neff Convertible Strategies Fund, L.P. $ 188,000 2,037
Boilermakers Blacksmith Pension Trust $ 1,650,000 17,884
Boston Museum of Fine Arts $ 151,000 1,636
Boulder II Limited $ 2,850,000 30,891
BP Amoco PLC Master Trust $ 1,758,000 19,054
BTES - Convertible ARB $ 46,130,000 500,000
BTPO Growth vs. Value $138,390,000 1,500,000
California Public Employees Retirement System Nominee $ 3,000,000 32,516
Name Surfboard & Co.
CALAMOS Market Neutral Fund-CALAMOS Investment Trust $ 1,670,000 18,101
Canyon Capital Arbitrage Master Hedge Fund. LTD. $ 50,743,000 550,000
Canyon Value Realization (Cayman) Ltd. $ 11,000,000 119,228
CFFX, LLC $ 2,000,000 21,677
CIBC World Markets $ 6,000,000 65,033
City of New Orleans $ 315,000 3,414
City University of New York $ 185,000 2,005
Clinton Riverside Convertible Portfolio Limited $ 4,500,000 48,775
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Conseco Fund Group - Convertible Securities Fund $ 3,250,000 35,226
Conseco Health Insurance Company - Convertible $ 1,500,000 16,258
Conseco Senior Health Insurance Company - Convertible $ 1,500,000 16,258
Conseco Variable Insurance Company - Convertible $ 750,000 8,129
Consulting Group Capital Markets Funds $ 450,000 4,877
Cova Bond Debenture Fund $ 500,000 5,419
Credit Suisse First Boston Corporation $ 5,000,000 54,196
CSFB Convertible & Quantitive Strategies $ 1,000,000 10,838
D.E. Shaw Investments, L.P. $ 1,500,000 16,258
D.E. Shaw Valence, L.P. $ 5,500,000 59,614
Deephaven Domestic Convertible Trading Co. $ 1,000,000 10,838
Delphi Financial Group, Inc. $ 500,000 5,419
Delaware PERS $ 1,840,000 19,943
Deutsche Bank Securities $ 7,521,000 81,519
Elf Aquitaine $ 200,000 2,167
Engineers Joint Pension Fund $ 621,000 6,730
Employee Benefit Convertible Securities Fund $ 200,000 2,167
Enterprise Convertible Securities Fund $ 108,000 1,170
Franklin and Marshall College $ 245,000 2,665
First Republic Bank $ 225,000 2,438
Fuji U. S. Income Open $ 500,000 5,419
Gaia Offshore Master Fund Ltd. $ 2,500,000 27,097
Goldman Sachs and Company $ 3,251 300,000
Grady Hospital Foundation $ 161,000 1,745
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Granville Capital Corporation $ 6,000,000 65,033
Hamilton Partners Limited $ 4,000,000 43,355
HFR Master Fund, Ltd. $ 100,000 1,083
Highbridge International LLC $ 18,000,000 195,100
Hotel Union & Hotel Industry of Hawaii $ 980,000 10,622
ICI American Holdings Trust $ 980,000 10,622
Independence Blue Cross $ 138,000 1,495
Island Holdings $ 60,000 650
ITG, Inc. $ 203,000 2,200
James Cambell Corporation $ 386,000 4,183
JAS Securities $ 2,250,000 24,387
J.P. Morgan Securities, Inc. $ 10,950,000 118,686
Jeffries & Company Inc. $ 11,000 119
Kentfield Trading, Ltd. $ 3,760,000 40,754
Lazard Freres & Co. LLC $ 1,000,000 10,838
LDG Limited $ 250,000 2,709
Lehman Brothers International Europe $ 1,550,000 16,800
Lexington Vantage Fund (TQA) $ 4,613,000 50,000
Lipper Convertibles Series II, L.P.'s $ 1,875,000 20,323
Lipper Offshore Convertibles, L.P. $ 436,000 4,725
Lipper Offshore Convertibles, L.P. #2 $ 750,000 8,129
Lippers Convertibles, L.P.'s (Class B) $ 436,000 4,725
Local Initiatives Union $ 72,000 780
Lord Abbett Bond Debenture Fund $ 2,000,000 21,677
Lord Abbett Bond Debenture Fund $ 500,000 5,419
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Lumberman's Mutual Casualty $ 643,000 6,969
Mainstay Convertible Fund $ 5,000,000 54,194
Mainstay VP Convertible Portfolio $ 1,000,000 10,838
McMahan Securities $ 2,150,000 23,303
Merlin Biomed II, L.P. $ 28,834,375 312,500
Merlin Biomed, L.P. $230,675,000 2,500,000
Merrill, Lynch, Pierce, Fenner and Smith Inc. $ 1,535,000 16,637
Morgan Stanley & Co. $ 500,000 5,419
Nabisco Corporation $ 45,000 487
Nalco Chemical Company $ 335,000 3,631
Nations Convertible Securities Fund $ 3,300,000 35,768
New Orleans Firefighters Pension/Relief Fund $ 166,000 1,799
New York Life Separate Account #7 $ 600,000 6,503
New York Life Insurance and Annuity Corporation $ 17,000,000 184,262
New York Life Insurance Company $ 19,500,000 211,359
Nicholas Applegate Convertible Fund $ 2,107,000 22,837
Occidental Petroleum Corporation $ 305,000 3,305
Onex Industrial Partners $ 1,850,000 20,052
Onyx Capital Management, LLC $ 5,000,000 54,195
Oxford, Lord Abbett & Co, $ 800,000 8,671
Pacific Life Insurance Company $ 500,000 5,419
Pebble Capital Inc. $ 700,000 7,587
Penn Treaty Network America Insurance Company $ 295,000 3,197
Peoples Benefit Life Insurance Company Teamsters $ 3,725,000 40,375
PGEP IV, LLC $ 113,000 1,224
Physicians Life $ 487,000 5,278
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PIMCO Convertible Bond $ 3,000,000 32,516
Police & Fireman Retirement System of the City $ 850,000 9,213
Of Detroit
Pro Mutual $ 1,171,000 12,692
Putnam Investment Management Inc. on behalf of: $ 190,000 2,059
Putnam Asset Allocation Funds-Balanced Portfolio
Putnam Investment Management, Inc. on behalf of: $ 130,000 1,409
Putnam Asset Allocation Funds - Conservative
Portfolio
Putnam Investment Management, Inc. on behalf of: $ 1,000,000 10,838
Putnam Convertible Income-Growth Trust
Putnam Investment Management, Inc. on behalf of: $ 70,000 758
Putnam Convertible Opportunities and Income Trust
Quattro Global Capital, LLC $ 1,500,000 16,258
Quattro Global Capital, LLC $ 1,500,000 16,258
Ramius Capital Group Holdings, Ltd. $ 900,000 9,755
Raytheon Master Pension Trust $ 829,000 8,985
RCG Latitude Master Fund, Ltd. $ 1,800,000 19,510
RJ Reynolds (RJR) $ 143,000 1,549
Robertson Stephens $ 30,000,000 325,168
San Diego City Retirement $ 1,247,000 13,516
San Diego County Convertible $ 2,674,000 28,983
San Diego Employees Retirement Association $ 1,900,000 20,593
Salomon Brothers Asset Management Inc. $ 31,750,000 344,136
Screen Actors Guild Convertible $ 662,000 7,175
SG Cowen Securities $ 12,000,000 130,067
Shell Pension Trust $ 642,000 6,958
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Silvercreek Limited Partnership $ 1,100,000 11,923
Southern Farm Bureau Life Insurance $ 770,000 8,345
State of Maryland Retirement Agency $ 3,880,000 42,055
State of Oregon Equity $ 5,975,000 64,762
State Street Bank custodian For GE Pension Trust $ 1,805,000 19,564
Starvest Combined Portfolio $ 1,185,000 12,844
Teachers Insurance and Annuity Association $ 4,000,000 43,355
The Estate of James Campbell $ 509,000 5,517
The Putnam Advisory Company, Inc. on behalf of: $ 30,000 325
University of Rochester
The Putnam Advisory Company, Inc. on behalf of: $ 50,000 541
Parker-Hammifin Corporation
The Putnam Advisory Company, Inc. on behalf of: $ 30,000 325
Museum of Fine Arts, Boston
The Putnam Advisory Company, Inc. on behalf of: $ 100,000 1,083
ProMutual
TQA Master Fund $ 950,000 10,296
TQA Master Plus Fund, Ltd. $ 1,000,000 10,838
Tracor, Inc. Employees Retirement Plan $ 172,000 1,846
Transamerica Life Insurance and Annuity Company $ 8,000,000 86,711
Transamerica Premier Balanced Fund $ 1,000,000 10,838
UBS O'Connor LLC, F/B/O UBS Global Equity Arbitrage $ 500,000 5,419
Master Limited
Value Realization Fund B, LP $ 450,000 4,877
Value Realization Fund, LP $ 8,000,000 86,711
Viacom Inc. Pension Plan Master Trust $ 68,000 737
Wake Forest University $ 1,163,000 12,605
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Writers Guild Convertible $ 385,000 4,172
Wyoming State Treasurer $ 1,329,000 14,404
Zeneca Holdings Trust $ 765,000 8,291
Zurich HFR Master Hedge Fund Index Ltd. $ 250,000 2,709
Zurich HFR Calamos Holding Limited $ 80,000 867
Zurich HFR Master Hedge Fund Index Ltd. $ 200,000 2,167
Zurich International Benchmark Fund $ 2,306,500 250,000
1976 Distribution Trust FBO A.R. Lauder/Zinterhofer $ 21,000 227
1976 Distribution Trust FBO Jane A. Lauder $ 21,000 227
(1) The number of securities beneficially owned is determined under the rules of
the SEC and the information is not necessarily indicative of beneficial
ownership for any other purpose. Under those rules, beneficial ownership
includes any securities as to which the individual has sole or shared voting
power or investment power and also any securities which the individual has the
right to acquire within 60 days after the date the selling holder provided this
information, through the exercise of any stock option or other right. The
inclusion in the table of securities, however, does not constitute an admission
that the selling holders are direct or indirect beneficial owners of those
securities. The selling holders have sole voting power and investment power with
respect to all securities of capital stock listed as owned by the selling
holders.
This Prospectus Supplement No. 3 should be read in conjunction with the
Prospectus dated March 9, 2001.
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