Vertex rockets on drug study
By Val Brickates Kennedy, MarketWatch
Last Update: 11:17 AM ET May 10, 2005
BOSTON (MarketWatch) - Vertex Pharmaceuticals shot up over 20% on Tuesday morning on news that its drug candidate VX-950 was showing promise in treating hepatitis C.
Shares of Vertex were up 22% at $13.60 in late morning trade.
Early Tuesday, Vertex (VRTX: news, chart, profile) said that a Phase I clinical trial had shown VX-950 to be safe and effective in treating the hepatitis C virus (HCV), a debilitating inflammation of the liver.
The company said the study's investigators will present details of the study at the medical conference Digestive Disease Week on May 17. Vertex said that later this year it hopes to apply to U.S. regulators to begin Phase II clinical trials in the U.S.
Analysts Tuesday said that the announcement was a milestone for Vertex, which still operates in the red.
"We believe today's announcement ... represents a catalyst to continued progress in Vertex's growth and prospects after years of clinical and financial restructuring," wrote Needham & Co. analyst Mark Monane in his note Tuesday morning.
Adams Harkness analyst Joseph Pantginis agreed.
"Bottom line, VX-950 (along with a very robust pipeline) represents the future of Vertex. VX-950 represents a potential new addition to the HCV market, which is severely underserved on the pharmaceutical front," wrote Pantginis. "We would characterize VX-950 as a key product candidate in Vertex's pipeline; its "core" status should be instrumental, we believe, in propelling the company to profitability."