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Vertex to Halt Enrollment Due to Coronavirus, Keeps Sales View

Vertex Pharmaceuticals Inc. VRTX announced that it will halt enrollment in certain ongoing studies and may delay new study starts depending on the disease, stage of development and type of study. The decision was taken in order to reduce the burden on the healthcare system and allow doctors and healthcare facilities to focus on efforts to combat coronavirus disease, COVID-19. However, the company stated that it will try to ensure continuity of ongoing clinical studies by setting up virtual clinic visits and home delivery of study drug wherever possible.

The company is currently evaluating its cystic fibrosis (“CF”) drug, Trikafta, in phase III studies in children with CF aged 6 through 11. Please note that Trikafta is the company’s first and newly launched triple combination CF regimen, which was approved in October 2019 for treating patients 12 years and older. A regulatory application seeking approval for the pediatric patient population is expected to be filed in 2020. However, COVID-19 may impact the timeline.

Two phase II studies are evaluating separately VX-561 and next-generation corrector, VX-121, in triple combination with VX-561 and tezacaftor as a potential once-daily triple combination regimen. Apart from CF, the company also has an early-stage portfolio in other specialty disease areas like pain, alpha-1 antitrypsin deficiency, sickle cell disease, beta-thalassemia and APOL1-mediated kidney diseases. Several study data readouts are expected in 2020, which may also get delayed.

The coronavirus pandemic, which has killed more than 33,500 people globally, has compelled healthcare systems to prioritize care for COVID-19 patients while limiting other activities. The pandemic is affecting business operations across the pharma industry. Last week, several large pharma players decided to halt enrollment and delay new study starts. These include names like Eli Lilly LLY, Bristol-Myers BMY and Pfizer PFE. Bristol-Myers has also decided to delay the launch of its recently approved multiple sclerosis drug, Zeposia, while Pfizer’s generic unit, Upjohn, and Mylan plan to postponed their merger to the second half of 2020 due to COVID-19.

So far this year, Shares of Vertex have declined 0.7% compared with the industry’s decrease of 9%.

 

Meanwhile, the company also stated in the same press release that it remains confident about its supply chain related to its approved CF drugs and continues to expect its business to remain unchanged. The company kept its business outlook for 2020 unchanged. It expects total revenues for CF products in the range of $5.1-$5.3 billion in 2020.

While consistent label expansion of CF drugs drove sales growth in 2019, in 2020, sales are expected to be primarily driven by the uptake of Trikafta. In the fourth quarter of 2019, the drug generated $420 million in sales in just around two months of its launch. Trikafta is crucial for Vertex’s long-term growth as it has the potential to treat up to 90% of CF patients.

Vertex Pharmaceuticals Inc. Price

 

Vertex Pharmaceuticals Incorporated Price
Vertex Pharmaceuticals Incorporated Price

Vertex Pharmaceuticals Incorporated price | Vertex Pharmaceuticals Incorporated Quote

Zacks Rank

Vertex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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