Vertex takes another step towards a possible hepatitis C drug launch (VRTX)
Vertex Pharmaceuticals Inc. (Nasdaq: VRTX) this morning said it will sell its rights to milestone payments tied to its hepatitis C drug telaprevir in Europe, a possible sign that the launch of the drug with partner Johnson & Johnson (NYSE: JNJ) for 2011 may be on track.
Back in April, Vertex presented final data from its Phase IIb trial of the drug in treatment-resistant patients. The data showed success in treating many different treatment groups .Sustained viral response rates were achieved, including those with cirrhosis. Slightly more than half of treatment-resistant patients achieved viral response in the 24-week and 48-week telaprevir-based regimens.
Telaprevir is now considered one of the premier hepatitic-C drug candidates. Its sales within three years of hitting the market could be more than $2 billion.
In selling the rights to the milestone payments, Vertex appears to be making another in a series of cash moves. The company has been adept at doing so over the past 18 months.
It raised about $400 million with a convertible and stock offering in February last year, before the equity capital markets froze. It sold royalties to GlaxoSmithKline (NYSE: GSK) in May 2009. It was able to raise more than $200 million in September last year, when raising funds was very difficult for many biotechs. And it raised more than $300 million in February 2009.
The combination of moves, including a recent debt conversion appears to be adding to its treasure chest in preparation for telaprevir . — Mike Tarsala
