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Vertex (VRTX) to Buy ViaCyte to Speed Up VX-880 Program

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Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has entered into an agreement to acquire ViaCyte, a private cellular therapy company, to accelerate the development of the VX-880 program in type I diabetes.

Vertex has agreed to pay $320 million in cash for the buyout. The acquisition will add ViaCyte’s tools, technologies and assets with the potential to accelerate the development of VX-880, Vertex’s stem cell-derived fully differentiated islet cell replacement therapy that could offer a functional cure for people living with type I diabetes. The deal is expected to close later this year, subject to certain customary closing conditions.

Vertex’s stock has risen 33.9% this year so far against the industry’s decline of 19%. 

 

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A phase I/II study is ongoing on VX-880. While the program was placed on a clinical hold by the FDA in May based on insufficient information for dose escalation, data available from the two patients treated at half the target dose demonstrated proof-of-concept. The FDA’s clinical hold was lifted earlier this month, and the phase I/II study continues to enroll and dose patients. 

VX-880 is Vertex’s first of the two investigational programs for transplanting functional islets into patients. VX-880 is for the transplantation of islet cells alone, using immunosuppression to protect the implanted cells. The second program will involve the implantation of the islet cells inside an immunoprotective device. Clinical development on the second program is expected to begin in 2022.

Vertex currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked biotech stocks are Immunocore Holdings (IMCR - Free Report) , F-star Therapeutics and Selecta Biosciences , all carrying a Zacks Rank of 1.

The Zacks Consensus Estimate for Immunocore Holdings’ 2022 loss has declined from $4.08 per share to $2.76 while loss estimates for 2023 have narrowed from $3.78 per share to $2.80 in the past 60 days. Shares of Immunocore have risen19.6% in the year-to-date period.

Earnings of Immunocore beat estimates in two of the last four quarters, missed the mark on one occasion and met estimates once, the average surprise being 14.19%.

The Zacks Consensus Estimate for F-star Therapeutics’ loss per share has narrowed from $2.62 to $2.35 for 2022 and from $2.53 to $2.37 for 2023 in the past 60 days. Shares of F-star Therapeutics have risen 23.5% year to date.

Earnings of F-star Therapeutics’ beat estimates in three of the last four quarters, missing the mark on one occasion, the average surprise being 51.62%.

The Zacks Consensus Estimate for Selecta Biosciences’ 2022 loss per share has narrowed from 27 cents to earnings of 3 cents in the past 60 days. Shares of SELB have declined 50.6% year to date.

Selecta Biosciences delivered a four-quarter average negative earnings surprise of 1.98%.


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