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Vertex seeks EMA approval for cystic fibrosis drug targeting infants

Published 23/02/2024, 12:20
© Reuters.

LONDON - Vertex Pharmaceuticals (NASDAQ:VRTX) has announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion on expanding the use of its cystic fibrosis drug, KALYDECO® (ivacaftor), to treat infants from 1 month to less than 4 months old with specific CFTR gene mutations. This development could mark KALYDECO® as the first medicine approved in Europe for the treatment of the underlying cause of cystic fibrosis in this age group.

The proposed label expansion includes infants with one of the following mutations in the cystic fibrosis transmembrane conductance regulator (CFTR) gene: R117H, G551D, G1244E, G1349D, G178R, G551S, S1251N, S1255P, S549N, or S549R. Vertex's Vice President of International Medical Affairs, Fosca De Iorio, emphasized the importance of early treatment for cystic fibrosis, a disease that is present from birth and progressively impairs multiple organs, particularly the lungs.

KALYDECO® is already approved in the European Union for patients aged 4 months and older with specific CFTR mutations. The drug functions as a CFTR potentiator, designed to improve the transport of salt and water across cell membranes, which aids in hydrating and clearing mucus from the airways.

Cystic fibrosis affects over 92,000 individuals globally and is characterized by a defective or missing CFTR protein due to mutations in the CFTR gene. The disease leads to the accumulation of thick mucus in the lungs, causing chronic infections and lung damage, which can be fatal. The median age of death for CF patients is in the 30s, although treatment advancements are improving survival rates.

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The information in this article is based on a press release statement from Vertex Pharmaceuticals.

InvestingPro Insights

As Vertex Pharmaceuticals (NASDAQ:VRTX) seeks to expand the use of its cystic fibrosis drug, KALYDECO®, the company's financial health and market performance become increasingly relevant to investors and stakeholders. With a market capitalization of $110.24 billion, Vertex stands out as a significant player in the biotechnology industry. The company's commitment to innovation and treatment advancements is reflected in its financials, with a robust revenue growth of 10.51% in the last twelve months as of Q4 2023.

An InvestingPro Tip highlights the company's stable financial position, noting that Vertex holds more cash than debt on its balance sheet, which can be a reassuring sign for investors looking for a financially secure company in a volatile market. Additionally, the company's stock is known to trade with low price volatility, suggesting that Vertex shares could be a relatively stable investment in the often turbulent biotech sector.

Investors should note that Vertex is trading at a high P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 27.39 as of the last twelve months of Q4 2023. This could indicate that the stock's current valuation factors in high expectations for the company's future performance, especially as it makes strides in expanding treatment options for cystic fibrosis patients.

For those interested in exploring more about Vertex Pharmaceuticals and its financial outlook, there are additional InvestingPro Tips available. These include insights on earnings revisions, valuation multiples, and the company's performance within its industry. To gain a deeper understanding and access these tips, consider visiting https://www.investing.com/pro/VRTX and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 16 more InvestingPro Tips available for Vertex Pharmaceuticals, providing a comprehensive analysis for informed investment decisions.

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