Reynolds Holding and Rob Cyran discuss Vertex's new cystic fibrosis drug and its promise for patients as well as pharma profits.
-- news from the pharmaceutical industry today. Biotech firm vertex has announced that it has found a fairly effective treatment for cystic fibrosis. The news bumped up the company's valuation by some six billion dollars. -- -- Give us that he did well actually it showed is that there's been lots of different mutations that cause this preferences this one helps the -- music yes this one helps the most common one. They were so one drug in about 2000 patients and it's -- stuff -- million dollars a year. 2000 patient that's that's like not not yet in the reason it -- a -- ticket -- -- for about 300000 dollars. A patient right. The new drug work and about almost about ten times as many patients because it's it's too drugs put together in the next two different matters that. And that he did about the could be very very big market. And the reason why ensure -- -- Gigli with. Charging 300000 dollars right because there's basically no other option alternate -- pitchers are our -- and into a church how much of the century pictures likely. They'll they'll pay almost all of it yet because I think it's it's it's it's kind of a common you know it's like 20000 patients just in multiple countries. So and insurers don't want the bad headlines of saying you know okay well they've got and and also running regulatory problems that come along with with the new laws. Right I think you know we're back -- this it's this child sorry they're -- you know gone and I wouldn't. Now what are the company actually announced Sunday it said we ourselves have done these tests in this struggling he's got to tell us ago. The FDA what passed it and yet they tended to phase three trials they've shown it is the drug works and -- accommodation to draft works and reduce hospitalizations and fewer antibiotics that they're all good news. Ask him before the FDA if his problem is almost certainly going to say yes we heard the -- and you can never predict a 100% with gifted but almost. They've they've almost assuredly will because like I said there's really nothing for these treatments that deadly disease and there's no other treatments that cure these are fundamental level. And so you know why would you do not prevent him. Well now the provenance of this drug it's kind of interesting is that I mean it would it was a non profit for cystic fiber business has -- -- -- first came -- whether or what -- -- a non -- provided funding for the very basic research unit and it went to another company -- bought and -- predicts -- that the big trials you know and the that that. Does this congress foundation look at local royalty payments but it shows there's kind of innovative ways of you can develop drugs for these very small indications kind of -- the -- -- -- Interest in development not only for -- but for the pharmaceutical industry and patience. Will be following that story as well as others in the meantime stay tuned tomorrow for more breaking news.