Vertex Pharmaceuticals was working on the creation of a new treatment for a rare disease but has since scrapped the research. This has led to a sharp fall in the VRTX stocks. The plug was pulled because the treatment did not seem to benefit the patients upon trial.
Antitrypsin deficiency is a rare genetic disease in which the liver is not able to produce the right protein molecules for the body. The produced proteins do not have the right shape and end up getting trapped on the way to the lungs. Vertex Pharmaceuticals was able to create functional proteins however, the overall benefit is negligent.
Since the first phase results have been out, Vertex Pharma has stopped the VX-864 from beginning the final testing phase. They have also said that they will not be working with alpha-1 antitrypsin deficiency before 2022 as per their current decision. This has caused the VRTX stock value to reduce around 13 percent, its latest evaluation being 188.80.
Effect on VRTX Stock
Vertex Pharmaceuticals have been one of the leading manufacturers and creators of treatment for cystic fibrosis. Their venture of working on alpha-1 antitrypsin deficiency was the first of its kind in the company and all eyes were on what was to happen to the VRTX Stock.
Their decision to withdraw from the trials for alpha-1 antitrypsin treatment has led to a lot of bad press. Apart from this, Vertex Pharmaceuticals had no other new projects in the news. This has caused a sharp decline in the stock value. Industry experts are saying that the company will now be forced to make large research-backed transactions to be able to build its value once again. It seems that the company is now trying to figure out between type 1 diabetes, kidney disease, pain relief, and blood diseases.
AATD or the alpha-1 antitrypsin genetic disorder has no food and drug administration treatment options that have been proved to eliminate the defect that causes the protein in the cells to fold and become misshapen. This striking part of the research and the hope that Vertex Pharmaceuticals was close to finding its solution was looking like a deal-breaking source of revenue generation.
However, Vertex Pharmaceuticals continue to be among the leading names in the cystic fibrosis treatments industry regardless of the fiasco. This should enable the company to do some better in some time and gain steady control over the market in the long run.
However, according to the grapevine, this loss has been a gain for Arrowhead Pharmaceuticals that are currently at 88.10, socks at 5.2 percent. They have been collaborating with Takeda Pharma to create a treatment for AATD, thus making their own way in the stock market. Their treatment, they say, is in the final stages and happens to be a late-stage drug that might help patients. They have gone on record to say that there have been improvements in their patients after 6 months with the drug.