Vertex Stock Booms After FDA Reports New Drug is Effective (VRTX)

Vertex VRTX is up more than 10% today on news that the FDA found the pharmaceutical company's Hepatitis C drug was more effective than current drugs on the market. The announcement on the efficacy of telaprevir comes ahead of Thursday's meeting, where the FDA is expected to vote on formally accepting the drug. The FDA is also considering a similar drug by Merck MRK this week. The new drugs, once approved, will be offered in conjunction with the current drugs, with the aim of reducing viral loads inside the body. Cure times for the new drug cocktail have been cut in half, with most patients cured within 6 months of starting treatment. The new drug works by stopping reproduction of the hepatitis virus inside the human body. Older medicines worked by stimulating the immune system to fight off the hepatitis infection. The combination of the two gives doctors a new, one-two punch in defeating the virus. "A drug like telaprevir does an amazing job clearing the virus, but there's a small portion that is just intrinsically less responsive and it's the job of the older drugs to clear up that mess that's left behind," said Dr. Camilla Graham, Vertex's vice president for global medical affairs.