Array Biopharma Inc (ARRY), Vertex Pharmaceuticals Incorporated (VRTX): This Week in Biotech

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) suffered through an unpleasant week, with shares down 9% after it announced a partial clinical hold on Friday for its all-oral hepatitis-C drug, VX-135. The drug, which is currently in midstage trials, was placed on clinical hold by the FDA after it noted elevated, but reversible, liver enzyme levels in patients receiving the 400mg dose with ribavirin. To me this looks like a precautionary hold, but it will be perceived as painful, since it puts Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s oral hepatitis-C medication that much further behind its competition. Kalydeco is becoming the future of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) with regard to its potential to treat various mutations of cystic fibrosis, so I wouldn’t worry too much about this minor setback with VX-135.

The big loser this week, even if the share price doesn’t reflect it, is hybrid branded and generic-drug maker Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), which saw several of its patents on blockbuster multiple sclerosis drug Copaxone overturned in a federal appellate court. This ruling could potentially open the door for generic-drug makers to begin marketing generic versions of Copaxone, a $4 billion-per-year drug, by May instead of two years from now as Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) had initially expected. The move comes as good news for generic-drug developers suchas Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), which, with Novartis AG (ADR) (NYSE:NVS), will make one of the two competing generic versions of the drug. For Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), it gives the hybrid drugmaker all the more reason to continue to fight for its patents in court, and to search for potentially accretive acquisitions before it loses its Copaxone patent exclusivity.

The article This Week in Biotech originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool owns shares of, and recommends, Momenta Pharmaceuticals. It also recommends Vertex Pharmaceuticals.

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