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Vertex Halts VX-264 Diabetes Treatment After Phase 1/2 Trial Fails to Meet Efficacy Endpoint

• Vertex Pharmaceuticals has discontinued development of VX-264, an encapsulated islet cell therapy for Type 1 diabetes, after Phase 1/2 trial data showed insufficient C-peptide production despite acceptable safety profile.

• The company's lead T1D candidate zimislecel (VX-880) remains on track, with pivotal trial enrollment expected to complete in H1 2025 and regulatory submissions planned for 2026.

• Vertex continues to advance multiple research-stage immunoprotective approaches for Type 1 diabetes, while conducting further analyses of the VX-264 trial results to understand the treatment's limitations.

Vertex Pharmaceuticals announced today that it will discontinue clinical development of VX-264, its investigational encapsulated islet cell therapy for Type 1 diabetes (T1D), after Phase 1/2 trial data failed to demonstrate sufficient efficacy to warrant further advancement.
The Boston-based biopharmaceutical company has completed enrollment and dosing in Parts A and B of the VX-264 clinical trial, which evaluated fully differentiated pancreatic islet cells encapsulated in a proprietary immunoprotective device. While the treatment was generally safe and well-tolerated, meeting one primary endpoint, it failed to achieve the efficacy endpoint at the planned 90-day analysis.
"Increases in C-peptide, a marker of insulin production, were not observed at levels necessary to deliver benefit," Vertex stated in its announcement. The company plans to conduct additional analyses, including examination of explanted devices, to better understand these findings.

Zimislecel Program Continues to Progress

Despite this setback, Vertex's lead T1D program featuring zimislecel (VX-880), a fully differentiated islet cell therapy administered with standard immunosuppression, remains on track. The pivotal trial for zimislecel is expected to complete enrollment and dosing in the first half of 2025, with marketing applications to global regulators anticipated in 2026.
Zimislecel represents a different approach to treating T1D compared to VX-264. While VX-264 utilized an encapsulation device intended to protect transplanted cells from immune attack without requiring immunosuppression, zimislecel employs standard immunosuppressive regimens similar to those used in organ transplantation.

Type 1 Diabetes Treatment Landscape

Type 1 diabetes affects approximately 1.6 million Americans and requires lifelong insulin therapy. The condition results from autoimmune destruction of insulin-producing beta cells in the pancreas, leading to the body's inability to regulate blood glucose levels.
Current standard treatments focus on insulin replacement through injections or pumps, but these approaches require constant monitoring and adjustment, and cannot fully replicate the precise glucose control of functioning pancreatic islet cells.
Cell replacement therapies like those being developed by Vertex aim to restore natural insulin production by transplanting functional islet cells. The challenge has been protecting these cells from immune rejection while maintaining their function.

Future Directions for Vertex's T1D Portfolio

While discontinuing VX-264, Vertex emphasized its commitment to advancing multiple novel, research-stage immunoprotective approaches for T1D. The company's diabetes portfolio strategy involves pursuing several technological approaches simultaneously.
The failure of VX-264 highlights the significant challenges in developing effective encapsulation technologies that can both protect transplanted cells and allow sufficient nutrient exchange and insulin release.
Industry analysts note that while the VX-264 news represents a setback, Vertex's diversified approach to T1D treatment development mitigates the overall impact on the company's diabetes program.
"Understanding why VX-264 failed to produce sufficient C-peptide levels will be crucial for informing future encapsulation approaches," said a diabetes research expert familiar with cell therapy approaches. "The field continues to face significant challenges in developing devices that provide both immune protection and optimal cell function."
Vertex's stock responded to the news with modest volatility as investors assessed the impact on the company's overall diabetes portfolio and pipeline.
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