Vertex Pharmaceuticals stock is rocketing higher after the company reported positive results from a study for its cystic fibrosis treatment.
In pre-market trading, shares were up as much as 55%.
Vertex’s study showed, “statistically significant improvement” in lung function for cystic fibrosis patients with a certain gene mutation.
Adam Feuerstein of TheStreet wrote following the results that they were, “Maybe not a home run, per se, but sticking with the baseball analogy, I’d say the study results are a base-clearing triple.”
Vertex said that it will seek approval for the treatment with the U.S. FDA and European Medicines Agency in the fourth quarter.
Feuerstein wrote in his report that last year, he laid out a way Vertex could generate $US10 billion annual sales from cystic fibrosis treatments. These results are a huge part of that equation.
These results are a great example of the binary events that pharmaceutical investors face when a company’s drug trial results or regulatory approvals are released.
Following a trial result or regulatory meeting, shares of pharmaceutical companies are apt to rally sharply higher or completely tank.
Today, Vertex shareholders will feel like winners.