At the JP Morgan Healthcare Conference, Joshua Boger, Founder, Chairman and CEO of Vertex (NASDAQ:VRTX) introduces Kurt Graves, formerly Chief Marketing Officer at Novartis AG and now Vertex’s new Executive Vice President, Chief Commercial Officer and Head of Strategic Development.
Kurt’s presentation focused on Vertex’s commercial strategy to build telaprevir, a breaktrough Hepatitis C (HCV) drug, into a blockbuster. Vertex’s vision continues to be on “transformational innovation”: innovation that redifines health and transforms lives with new medications. Hepatitis C remains a market with high medical unmet needs, large potential for growth and treatment provided by specialists. It is particularly appropriate for the new commercial model that Vertex embraces:emphasis on quality of live outcomes and health economics ( rather than just efficacy and safety), patient centric (rather than just physician centric), focus on Impact of Voice (rather than just Share of Voice), growth through market share and market expansion ( rather than just market share), multi-brand treatment solution ( rather single brand).
Telaprevir is progressing toward phase III. The EMEA has provides scientific guidance to JNJ’s Tibotec unit, Vertex commercial partner in Europe. The FDA’s opinion is being expected by the end of January 2008.
While several of its competitors did bite the dust last summer ( see story on biobusiness.tv) , telaprevir appears to have an exceptional product profile: rapid viral decline, strong efficacy (RVR rate 75-80%, SVR> 60%, relapse<10%), and most importantly shorter treatment duration (24 weeks vs. 48 weeks but current standard of care). This is particularly important when 58% of patients cite treatment duration as a reason to drop out.
Recent market research revealed that 98% of physicians intended to prescribe telaprevir within 12 months of availability. Vertex expects the Hepatitis C market to be $ 4 billion by 2010 and exceed $ 10 billion aftter 2012.
Beyond telaprevir, Vertex remains committed to category leadership through the development of second generation protease inhibitors and later of oral drug combinations, adressing the needs of every patient segment.
The promise is clearly there. However investors continue to be cautious with Vertex trading at $22.60, close to its 52 week-low of $ 20.71 and bearly more than 505 of his 52 week high of $ 41.42. Vertex is a strong buy for all those who believe in the telaprevir promise.