UPDATE 2-Vertex 4th-quarter loss widens, shares fall

(Adds share movement, stock offering, background)

NEW YORK, Feb 11 (Reuters) - Vertex Pharmaceuticals Inc (VRTX.O: Quote, Profile, Research) reported a much larger fourth-quarter net loss on Monday due to costs for developing its closely watched experimental hepatitis C treatment and lower collaboration revenue.

The company also forecast a larger net loss and lower revenue for 2008 than Wall Street was estimating and its shares fell nearly 7 percent in after hours trading.

The Cambridge, Massachusetts-based biotechnology company posted a net loss of $85.8 million, or 66 cents per share, compared with a loss of $27.3 million, or 22 cents per share, a year ago. Analysts on average expected a loss of 68 cents per share, according to Reuters Estimates.

For 2008, Vertex expects to post a net loss of $380 million to $410 million, including about $60 million in stock-based compensation expense and restructuring costs. Analysts are estimating a net loss of $351.8 million, according to Reuters Estimates.

The company estimates revenue for the year of $200 million to $220 million, well below current Wall Street estimates of $270.3 million.

Research and development spending for 2008 is expected to be in the range of $490 million to $520 million as the company advances its hepatitis C drug telaprevir into the most expensive final phase of human testing prior to seeking approval.

The drug is expected to significantly cut down the treatment duration of medicines currently used against the serious liver ailment.

Revenue for the fourth quarter was $51 million, shy of the $66.7 million Wall Street was anticipating and well below the year-ago quarter's $94.3 million, when Vertex had significantly greater research-based collaborations income.