Vertex's Lead Cut Down

Schering-Plough (NYSE: SGP  ) is moving forward with its antiviral hepatitis C drug even faster than expected. Although Vertex Pharmaceuticals' (Nasdaq: VRTX  ) telaprevir was originally going to market substantially sooner than Schering's boceprevir, Shering's most recent move will cut that lead down to almost nothing.

On Wednesday, Schering announced the plans for its phase 3 program with boceprevir, its protease inhibitor. This is significant news for Vertex, because many investors and analysts (like myself) have been counting on telaprevir having some lead to market over boceprevir.

Vertex started its telaprevir phase 3 program in March. Schering's press release was unfortunately light on the details about when exactly its phase 3 program will start enrolling patients, but it is likely to be soon. Both Vertex's and Schering's studies will be dosing individual patients with drugs for the same amount of time (48 weeks), so the phase 3 program that completes its patient enrollment first will likely have the drug that gets to market soonest for newly diagnosed hepatitis C patients.

The hepatitis C genotype 1 standard of care treatment regimens currently consist of either Schering's pegylated interferon (Peg-Intron) or Roche's slightly different interferon (Pegasys). The efficacy and safety of the two drugs are generally very comparable, and this scenario may be playing out with telaprevir and boceprevir as well.

Both Vertex and Schering's pivotal phase 3 studies in newly diagnosed hepatitis C patients will enroll about 1,000 patients. In its respective phase 2 studies, Vertex seemed to have the less strict patient enrollment criteria. If this holds for its respective phase 3 studies, the race to complete the trials will come down to Vertex's several-month enrollment lead and looser enrollment criteria, versus Schering's much greater experience in running hepatitis C studies, thanks to its history with Peg-Intron.

Efficacy, safety, and convenience will ultimately determine the winners and losers in the race to develop the next new hep C drug. While there are some key potential differences in how Schering, Vertex, and Vertex partner Johnson & Johnson (NYSE: JNJ  ) will be positioning their protease inhibitor hep C drugs to be used, whichever compound is approved first will have some positive marketing advantages compared to the follow-on protease inhibitors.

Vertex is an active pick of our market beating Rule Breakers newsletter. The growth-stock picking service is always on the hunt for hot drug stocks and other cutting-edge picks. Click here to see all of our latest discoveries with a free 30-day trial subscription.

Fool contributor Brian Lawler does not own shares of any company mentioned in this article. Johnson & Johnson is an active Income Investor pick. The Fool has an A+ disclosure policy.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 651835, ~/Articles/ArticleHandler.aspx, 7/24/2014 3:30:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement