Vertex shares jump on test data for hepatitis drug
Shares of Vertex Pharmaceuticals Inc. jumped today after the company presented data from a midstage study showing hepatitis C patients responded to its experimental drug telaprevir.
The study involves 54 patients receiving telaprevir in combination with peginterferon and another treatment, ribavirin. The Cambridge company presented the results at the 43rd annual meeting of the European Association for Study of the Liver.
The stock rose $4.71, or 25.2 percent, to $23.35 in afternoon trading on the Nasdaq Stock Market. Shares have traded between $13.84 and $41.42 over the last 52 weeks.
Vertex's telaprevir is being developed at the same time that competitor Schering-Plough Corp. of New Jersey works on the hepatitis C treatment candidate boceprevir.
Robert W. Baird analyst Thomas Russo reaffirmed a "Neutral" rating with a $24 price target on the stock, saying that telaprevir is the most advanced pipeline candidate for hepatitis C, as it nears late-stage studies.
"Upside potential may be several-fold greater if it (telaprevir) can tap into hepatitis C treatment-experienced group." he said.
There are about 250,000 people in the U.S. who have already received some for of hepatitis C treatment, but have failed to respond to therapy.
Oppenheimer & Co. analyst Brian Abrahams, meanwhile, reaffirmed a "Outperform" rating and raised his price target to $43 from $38, citing telaprevir's clinical advantage so far over future competitor boceprevir. He cited better patient responses to telaprevir. (AP)
