Vertex Hep-C Drug Shows Promise

Updated from 9:21 p.m. EDT April 15

One of the big knocks against Vertex Pharmaceuticals(VRTX Quote) has been that the data surrounding its hepatitis C drug telaprevir was a bit thin compared with the hype and expectations enveloping it.

But the divide between hype and reality is definitely starting to narrow, especially after Saturday, when researchers presented new clinical data on telaprevir that shows the drug having a profound, and positive, effect in the treatment of hepatitis C.

Vertex shares closed Friday down $1.39, or 4%, to $30.16. In very early premarket trading Monday, Vertex was trading at about $28.45.

There is still a lot unknown about telaprevir and what its ultimate role in hepatitis C treatment will be, but the weight of evidence is growing to suggest that the drug, at the very least, might cut in half the treatment duration for hepatitis C patients. It might also increase the number of patients cured of the disease.

If one or both of those things happens, telaprevir could be the billion-dollar molecule that Vertex CEO Joshua Boger has long searched for.

Telaprevir is a pill designed to attack hepatitis C by inhibiting the protease enzyme, one of the key enzymes the virus uses to copy itself. This "direct antiviral" approach differs from current hepatitis C drugs, which boost the immune system's ability to tamp down and eliminate the virus.