Vtx Health(VRTX.US) surged after hours, kidney drug povetacicept late-stage trial meets expected goals

During Monday’s after-hours trading, Vertex Pharmaceuticals (VRTX.US) stock rose as much as 11%. As of press time, the gain narrowed to 5%. Previously, the biotech company announced that its drug for treating kidney diseases met its primary endpoints in late-stage trials, fueling its strategy to expand beyond cystic fibrosis treatments. As of Monday’s close, the company’s stock has gained 1.7% this year.

In a statement, the company said that patients treated with povetacicept experienced a 52% reduction in urine protein levels after 36 weeks compared to baseline. The company also noted that in a study involving over 605 patients, the drug was generally safe and well tolerated.

Headquartered in Boston, Vertex has been working to expand beyond its core cystic fibrosis business. Sales of its gene editing therapies for sickle cell anemia and beta-thalassemia have been slow, and the company has been striving to secure insurance coverage for its newly launched pain medication, Journavx.

Vertex stated that it plans to submit its povetacicept application to the U.S. Food and Drug Administration (FDA) by the end of March and seek accelerated approval. The company plans to use a priority review voucher to shorten the review process from 10 months to 6 months.

Vertex acquired povetacicept in 2024 through a $4.9 billion purchase of Alpine Immune Sciences Inc., marking the largest acquisition in Vertex’s history.

Povetacicept blocks two cytokine inflammatory proteins that can sometimes stimulate the immune system to attack the body’s own tissues. The company has been testing this therapy for IgA nephropathy, a kidney disease affecting about 1.5 million people worldwide. Many patients experience disease progression to end-stage renal disease, which can be fatal.