Vertex Pharmaceuticals Down After Study Discontinued
October 15 2020 - 11:30AM
Dow Jones News
By Michael Dabaie
Vertex Pharmaceuticals Inc. shares were down 19% to $219.14 in
morning trading.
The company said after the market close Wednesday that the Phase
2 study of VX-814 in patients with alpha-1 antitrypsin deficiency
was discontinued based upon safety and pharmacokinetic data.
Alpha-1 antitrypsin deficiency is a disorder that can cause lung or
liver disease.
"Based on the liver enzyme elevations observed, along with the
determination that we would not be able to safely achieve targeted
exposure levels with VX-814, we are discontinuing further
development of this molecule," said Chief Medical Officer Carmen
Bozic.
A Phase 2 trial of VX-864, which is structurally distinct from
VX-814, was initiated in July 2020 and is ongoing.
"The discontinuation of VX-814 due to safety/PK issues is
certainly a negative surprise and is likely to put meaningful
pressure on VRTX shares, especially given management's consistently
bullish commentary surrounding the program," Stifel said in an
analyst note.
"We really don't know much about '864 and its differences to
'814. Vertex notes that the compound is structurally distinct, but
outside of that, it's very hard to say how the drug, and its risk
profile, is or isn't different," Stifel said.
J.P. Morgan said in a note that the AATD program was widely
thought to be the primary value driver for the company outside of
cystic fibrosis.
"We acknowledge that the market may discount this next shot on
goal; however, '864 is 'structurally distinct' from '814 and many
times more potent, potentially offering a more optimal therapeutic
window," J.P. Morgan said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
October 15, 2020 11:15 ET (15:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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