Posted 2/17/2024, 7:25:00 PM
Vertex Gambles on Faster Approval for New Cystic Fibrosis Drug to Cannibalize Top Seller
- Vertex has a new cystic fibrosis drug, "vanza triple", that performed as well or better than its current best-selling CF drug Trikafta in trials
- If approved, vanza triple will likely cannibalize Trikafta's market share as patients can't take both
- Vertex plans to spend $100 million on a priority review voucher to accelerate vanza triple's approval, starting the cannibalization process sooner
- Faster approval makes sense because vanza triple will have higher profit margins for Vertex compared to Trikafta
- Vertex has successfully transitioned between CF drugs before without hurting revenue growth, so this move is likely bullish for the stock