Successful Drug Gets Class Action Lawsuit
Analyst Charley Travers said, “Drug fails, get sued.” Vertex Pharmaceuticals however, is getting sued after one of its drugs apparently succeeded.
Shareholders filed class action lawsuits against the company last week related to its reporting of clinical trial results for its hepatitis C treatment, telaprevir. The lawsuits charge that the company violated federal securities laws by issuing a series of misrepresentations about telaprevir to the market last year.
One suit claims that Vertex “shocked investors when it disclosed less than stellar results from a phase of testing [PROVE-2],” and that “the results came as a surprise to investors since the company failed to indicate the findings of PROVE-2 during the Class Period.”
All the shareholder lawsuits appear to be based on Vertex’s PROVE-2 phase 2 telaprevir study results, announced last year, which appeared somewhat underwhelming at first glance. For instance, compared to the control group in the study, telaprevir improved on the number of patients cured of their hepatitis C only by six percentage points.
However, the class action lawsuits don’t mention that the control group in this study performed unusually well, with 59% of patients showing no signs of hepatitis C, when the interim PROVE-2 results were announced last year. Even more importantly, the control group study results were still not yet complete. Such results almost always get worse over time, as some hepatitis C patients experience relapses (a phenomenon known as viral rebound). More on this class action lawsuit
Related posts:
- World Class Food Safety in Singapore
- MCS/Action picks up double award for Best PR Company
- Action Products Hires the Investor Relations Group
- Elderly Patients and Prescription Medications
- New Video Seminar Provides Executives with Essential Information about How to Have a Successful Public Relations …
Leave a Reply