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Vertex's (VRTX) IND for Type I Diabetes Drug Gets FDA Clearance

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Vertex Pharmaceuticals Incorporated (VRTX - Free Report) announced that the FDA has cleared the investigational new drug (IND) application for VX-880, an investigational stem cell-derived, fully differentiated pancreatic islet cell therapy. The clearance will enable the company to proceed with initiating a studyon VX-880 to treat type I diabetes (T1D).

Shares of the company have decreased 0.1% in the past year against the industry’s growth of 14.4%.

The company plans to initiate a phase I/II study in the first half of 2021 in patients who have T1D with impaired hypoglycemic awareness and severe hypoglycemia. It will be a sequential, multi-part study to evaluate the safety and efficacy of different doses of VX-880. About 17 patients will be enrolled in the study.

VX-880 is the first stem cell-derived therapy evaluating fully differentiated pancreatic islet cells for the treatment of T1D. It has the potential to restore the body’s ability to regulate glucose levels by restoring pancreatic islet cell function, including insulin production.

Type 1 diabetes is a condition in which the immune system destroys insulin-making cells in the pancreas. There are currently limited treatment options beyond insulin for the management of T1D.

Some other companies also have diabetes drugs in their portfolio. Novo Nordisk (NVO - Free Report) has Ozempic, which is an anti-diabetic medication used for the treatment of type II diabetes. Lilly’s (LLY - Free Report) Jardiance is marketed for treating type II diabetes.

Zacks Rank & Other Stocks to Consider

 Vertex currently carries a Zacks Rank #2 (Buy).

A similar-ranked stock in the healthcare sector is Alexion Pharmaceuticals Inc. . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alexion’s earnings per share estimates have increased from $12.04 to $12.06 for  2020 over the past 60 days. Shares of the company have increased 56.8% in the past year.

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