Shares in Vertex Pharmaceuticals Inc. slid Wednesday while Idenix Pharmaceuticals Inc. gained ground on a mix of study data for the their developing hepatitis C drug candidates.
The companies were among several attending the 43rd Annual Meeting of the European Association for the Study of the Liver (EASL) in Milan this week. The meeting runs through Sunday.
Shares of Cambridge, Mass.-based Vertex Pharmaceuticals Inc. fell $1.07, or 3.8 percent, to $25.97 after the company reported results from two midstage studies of telaprevir. Results for the drug, given in a treatment cocktail, reaffirmed prior studies showing it prompted a patient response.
But, the dropout rate for patients reached 17 percent, compared with a 10 percent rate for participants taking the non-telaprevir treatment regimen. The most common side effect was a rash.
Analysts viewed the results as positive, given the drug will likely face Schering-Plough Corp.'s boceprevir, which is also still in development.
Robert W. Baird & Co. analyst Thomas Russo reaffirmed a "Outperform" rating for Vertex as telaprevir enters late-stage development, calling the drug candidate the most advanced pipeline candidate aimed at hepatitis C.
"Hepatitis C is one of the hottest areas for drug development, which is no surprise given the significant opportunity to increase cure rate from the current 40 percent to 50 percent and reduce duration of treatment," he said in a note to investors.
Vertex's Cambridge, Mass. neighbor, Idenix Pharmaceuticals Inc., gained some ground on preclinical study data for its hepatitis C drug candidate.
The stock rose 5 cents to reach $6.26 after the company said the laboratory drug IDX potentially has antiviral effects and limited side effects.
Cowen and Co. analyst Rachel McMinn, in a note to investors, said the overall first day focus of the conference was mainly on side effects of hepatitis C drugs and the tendency for patients to become resistant to treatment.
"Near-term, experts stressed the need for addressing adverse events and lowering dose frequency and pill burden to improve compliance," she said.
Other companies developing hepatitis C drugs include Brisbane, Calif.-based InterMune Inc. with ITMN-191. The company's stock fell 52 cents, or 3.1 percent, to $16.54.
Schering-Plough shares rose 97 cents, or 5.7 percent, to $18.11 while shares of New Brunswick, N.J.-based Johnson & Johnson rose 32 cents to $67.31.
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