The Antidote: Inside the World of New Pharma

by Barry Werth

  (pp. 178–82) Interviews with Eric Olson, Virginia Carnahan, Paul Negulescu, Peter Mueller, Sabine Hadida, and Ken Boger. Kate Kelly, “Inside the Fall of Bear Stearns,” Wall Street Journal, May 9, 2009; “Vertex Achieves Breakthrough in Treating Basic CF Defect,” Commitment (news publication of the Cystic Fibrosis Foundation), Spring 2008.

  (pp. 182–84) Interviews with Josh Boger, Peter Mueller, Ann Kwong, John Alam, Bob Kauffman, Jack Weet, and Ken Boger. “Pharmasset Presents Results of 4-Week Combination Study of R7128 for the Treatment of Chronic Hepatitis C,” Drugs.com Mednews, April 25, 2008; “Hepatitis C Drug Development Projects That Have Been Terminated, Transferred to Other Companies or for Which Information Is No Longer Available,” http://www.hcvdrugs.com, August 3, 2009.

  (pp. 184–87) Interviews with Matt Emmens, Josh Boger, and Ian Smith. Andrew Pollack, “Genentech Rejects Takeover Bid from Roche,” New York Times, August 14, 2008; “ ‘Standstill’ Agreements Limit Potential Buyout Deals,” IN VIVO, September 11, 2008; Andrew Ross Sorkin, “Lehman Files for Bankruptcy; Merrill Is Sold,” New York Times, September 15, 2008; Luke Timmerman, “Vertex Sells Royalty Rights to HIV Drugs, Bets on Hepatitis C,” Xconomy, June 3, 2008; Elizabeth Bumiller and Jeff Zeleny, “First Debate Up in Air as McCain Steps Off the Trail,” New York Times, September 24, 2008.

  (pp. 187–91) Interviews with Josh Boger and Matt Emmens. Matt Emmens and Beth Kephart, Zenobia: The Curious Book of Business, Berrett-Koehler Publishers, 2008.

  CHAPTER 9: January 12, 2009

  (pp. 192–95) Interview with Josh Boger. Ron Winslow, “Investor Prospects Look Grim,” Wall Street Journal, January 12, 2009; Luke Timmerman, “Vertex CEO Josh Boger Retiring in May; Matthew Emmens to Fill Role,” Xconomy, February 5, 2009. The Boger-Huckman interview can be viewed online, http://video.cnbc.com/gallery/?video=996324419.

  (pp. 195–98) Interviews with Josh Boger, Judy Lippke, Matt Fitzgibbon, Mark Murcko, Bink Garrison, Geoff Porges, and Ian Smith. Andrew Ross Sorkin and Duff Wilson, “Pfizer Agrees to Pay $68 Billion for Rival Drug Maker Wyeth,” New York Times, January 26, 2009; Catherine Arnst, “Pfizer-Wyeth Merger Isn’t the Cure-All,” BusinessWeek, January 24, 2009; Mark Murcko, “This is a test,” email to his colleagues, February 6, 2009, by author’s permission.

  (pp. 198–200) Interviews with Matt Emmens, Ian Smith, Michael Partridge, and Josh Boger. Todd Wallack, “Vertex Feeling Growing Pains: Firm Scrambles for Workers, Space as Drug Shows Promise,” Boston Globe, November 2, 2007; Luke Timmerman, “Vertex Raises $320 Million in Secondary Stock Offering,” Xconomy, February 19, 2009; Luke Timmerman, “Out with Hedge Funds, In with Blue Bloods,” Xconomy, February 20, 2009; Natasha Singer, “Merck to Buy Schering-Plough for $41 Billion,” New York Times, March 10, 2009; Toni Clarke, “Vertex Out-Foxes Big Pharma to Buy ViroChem,” Forbes.com, March 4, 2009; Andrew Pollack, “Roche Agrees to Buy Genentech for $46.8 Billion,” New York Times, March 13, 2009; “Biotech Could Follow Pharma’s M&A Lead,” Investor’s Business Daily, March 20, 2009.

  (pp. 200–5) Interviews with Jack Weet, Matt Emmens, Peter Mueller, Josh Boger, Bink Garrison, and Amit Sachdev. The BIO podcast of Boger and Greenwood discussing the industry perspective can be heard online at http://www.bio.org/articles/bio-leaders-joshua-boger-and-jim-greenwood-discuss-challenges-and-opportunities-biotech-ind; “Consequences of Hepatitis C Virus: Costs of a Baby-Boomer Epidemic of Liver Disease,” Milliman, Inc., May 2009; Peter Baker, “Obama Was Pushed by Drug Industry, E-Mails Suggest,” New York Times, June 8, 2012.

  (pp. 205–7) Interviews with Bink Garrison, Mark Murcko, Ann Kwong, and Matt Emmens.

  (pp. 207–9) Interviews with Jack Weet, Ann Kwong, and Tara Kieffer. Andrew Pollack, “FDA Warning Is Issued on Anemia Drug’s Overuse,” New York Times, March 10, 2007.

  (pp. 209–14) Interviews with Matt Emmens, Nancy Wysenski, Bink Garrison, and Adam Koppel. Robert Langreth, “Hard to Swallow,” Forbes.com, May 13, 2002; SEC Form 8-K for Endo Pharamaceuticals Holdings Inc., August 31, 2009 (Changes in Directors or Principal Officer, Financial Statements); “2009 Exits/Financings Deal of the Year Nominee: Vertex’s Milestone Sale,” IN VIVO, December 16, 2009; Adam Feuerstein, “Vertex Raising Money—Again! Biobuzz,” TheStreet, December 2, 2009.

  (pp. 214–17) Interviews with Matt Emmens, Christopher Wright, Mark Namchuk, and Josh Boger. The Emmens/Huckman interview can be viewed online at www.cnbc.com/id/34845387. David Kirkpatrick, “White House Affirms Deal on Drug Cost,” New York Times, August 6, 2009; Aelok Mehta, “Seizures, Epilepsy Linked to Immune Reaction,” The Dana Foundation, April 2009.

  (pp. 217–20) Interviews with Nancy Wysenski and Matt Emmens. Michael Cooper, “GOP Senate Victory Stuns Democrats,” New York Times, January 21, 2010; David D. Kirkpatrick, “White House Affirms Deal on Drug Cost,” New York Times, August 6, 2009; Sheryl Gay Stolberg and Robert Pear, “Obama Signs Health Care Overhaul Bill, with a Flourish,” New York Times, March 23, 2010.

  (pp. 220–24) Interviews with Bob Kauffman and Jack Weet. Luke Timmerman, “Vertex Maps Out Combo Drug Game Plan for Treating Hepatitis C,” Xconomy, March 8, 2010; Andrew Pollack, “Hepatitis C Drug Raises Cure Rate in Late Trial,” New York Times, May 25, 2010.

  (pp. 224–29) Interviews with Bo Cumbo, Jack Weet, Bob Kauffman, and Matt Emmens.

  (pp. 229–33) Interviews with Bo Cumbo, Jack Weet, Peter Mueller, Bob Kauffman, and Matt Emmens. Robert Weisman, “Vertex Seeks Fast Approval for Drug,” Boston Globe, November 24, 2010; “Vertex Seeks FDA Green Light for Hepatitis C Drug: Chomps at the Bit for Fast Review,” Xconomy, November 23, 2010.

  CHAPTER 10: January 9, 2011

  (pp. 237–39) Interviews with Matt Emmens and Jack Weet. Ed Silverman, “JPMorgan Event: Narrow Hallways and Velvet Ropes,” Pharmalot.com, January 14, 2011; Mike Huckman, “Vertex Adds Color to the JPMorgan Healthcare Conference,” CNBC.com, January 13, 2011; Adam Feuerstein, “Merck Beats Vertex to FDA Hep C Filing,” TheStreet, January 6, 2011; Thomas Gryta, “Vertex CEO Unfazed by Matchup Against Merck,” Wall Street Journal, January 10, 2011; Julie M. Donnelly,“Vertex Gears Up for Its Big Year,” Boston Business Journal, December 31, 2010.

  (pp. 239–41) Interviews with John Condon and Jack Weet. Casey Ross, “City Draws Cambridge Drug Firm to Fan Pier,” Boston Globe, January 25, 2011; Jerry Kronenberg, “Cambridge Prepares Counter-Bid to Keep Vertex Away from Hub,” Boston Herald, February 14, 2011.

  (pp. 241–43) Interviews with Bo Cumbo and Josh Boger.

  (pp. 243–44) Interviews with Megan Pace, Peter Mueller, Jack Weet, Bob Kauffman, Ken Boger, and Josh Boger.

  (pp. 244–47) Christopher K. Hepp, “New Merck CEO Kenneth C. Frazier Has Philadelphia Roots,” Philly.com, December 1, 2010; Linda A. Johnson, “Earnings Preview: Merck to Tout Pipeline in Report,” BloombergBusinessweek, February 2, 2011; Tom Randall, “Merck’s Risky Bet on Research,” BloombergBusinessweek, April 23, 2011; Tom Randall, “Merck, Pfizer Research Strategies Diverge on Spending,” Bloomberg, February 3, 2011; “Pfizer vs. Merck and the Future of R&D: Déjà Vu All Over Again, INVIVO, February 10, 2011; “Goldman Sachs Is Bullish on Vertex,” Bloomberg News, February 9, 2011.

  (pp. 247–51) Interviews with Peter Mueller, Ian Smith, Ken Boger, Bob Kauffman, Matt Emmens, Geoff Porges, and Eric Olson. Andrew Pollack, “Trial Shows Cystic Fibrosis Drug Helped Ease Breathing,” New York Times, February 23, 2011; Luke Timmerman, “Vertex Nails Pivotal Study for Cystic Fibrosis, Racing Toward Market with Second Drug,” Xconomy, February 23, 2011; Matthew Herper, “Vertex May Make History with Cystic Fibrosis Drug,” Forbes, February 23, 2011; Matthew Herper, “A Big and Dangerous Day for Personalized Medicine,” Forbes, February 23, 2011.

  (pp. 252–55) Interview with Keith Johnson.

  (pp. 255–58) Interviews with Jack Weet, Bob Kauffman, and Matt Emmens.

  (pp. 258–61) Interview with Matt Emmens.

  (pp. 261–63) Interviews with Matt Emmens, Ann Kwong, Ian Smith, and Michael Partridge. Naomi Kresge, “Pharmasset to Challenge
Vertex Hepatitis C Treatment, BMO Says,” Bloomberg, March 8, 2011; Adam Feuerstein, “Pharmasset Hep C Data Wows Investors,” TheStreet, March 8, 2011; Robert Weinstein, “Pharmasset: The Real Numbers Behind the Hype,” Seeking Alpha, March 11, 2011; Katan Desai, “Who Will Win the Hepatitis C Market?” Seeking Alpha, March 14, 2011; Adam Feuerstein, “Hep C Drug Stocks in the Spotlight,” TheStreet, March 28, 2011; NBC Evening News, March 30, 2011.

  CHAPTER 11: April 27–28, 2011

  I was in attendance at all scenes described in chapters 11 to 14 unless otherwise specified. Additional sources:

  (pp. 264–68) Interviews with Bob Kauffman, Josh Boger, Camilla Graham, Amit Sachdev, Nancy Wysenski, and Jack Weet. Emily P. Walker, “FDA Panel Endorses Boceprevir for Hepatitis C,” medpagetoday.com, April 27, 2011; Heidi Ledford, “Regulatory Advisors Recommend New Hepatitis C Drug,” nature.com, April 28, 2011.

  (pp. 268–73) Interviews with Nancy Wysenski, Jack Weet, Megan Pace, Bob Kauffman, and Matt Emmens. “Noteworthy Pharmacist, Patrick Clay, Pharm.D.,” TheBody.com, HIV Leadership Awards 2005; on Clay’s research funding from Merck, American Journal of Pharmaceutical Education, 65 (Winter 2001), p. 426.

  (pp. 273–77) Interviews with Peter Mueller, Jack Weet, and Bob Kauffman. Jason Brudereck, “New Drug Has City Woman Free of Hepatitis C,” Reading (Pa.) Eagle, June 1, 2011; Luke Timmerman, “Vertex Wins FDA Panel’s Recommendation for New Hepatitis C Drug,” Xconomy, April 28, 2011; Robert Weissman, “Hepatitis C Drug from Vertex Sails Through Test,” Boston Globe, April 29, 2011; Richard Knox, “New Drugs for Hepatitis C Called Game Changers,” NPR.org, April 28, 2011; “Vertex Hepatitis Drug Still Holds Edge on Merck After FDA Panels,” Wall Street Journal, April 29, 2011; Brian Orelli, “Coronations for New Drug Royalty,” The Motley Fool/Fool.com, April 2011; “Goldman Sachs Raises Price Target on Vertex (VRTX), Sees 100% Chance of Approval Now,” StreetInsider.com, April 29, 2011.

  (pp. 277–80) Interviews with Bo Cumbo and Ken Boger.

  (pp. 280–83) Interviews with Ian Smith and Matt Emmens.

  (pp. 283–85) Interviews with Bo Cumbo, Matt Emmens, and Nancy Wysenski. Luke Timmerman, “Merck, Genentech Team Up on Hepatitis C Drugs, Raising Ante in Vertex Rivalry,” Xconomy, May 17, 2011; Brian Orelli, “If You Can’t Beat ’Em, Use ’Em to Beat Your New Rival,” The Motley Fool/Fool.com, May 18, 2011; Tracy Staton, “Can Merck/Roche Hep C Deal Put Victrelis on Top?” FiercePharma, May 18, 2011; “Merck and Co.: HCV Marketing Juggernaut,” UBS Investment Research, May 17, 2011; Linda A. Johnson, “Merck, Roche Expand Hepatitis C Drug Promo Deal,” BloombergBusinessweek, July 20, 2011.

  (pp. 285–88) Interviews with Nancy Wysenski, John Condon, Paul Daruwala, Josh Boger, and Adam Koppel. Matthew Herper, “Vertex’s Biggest Advantage,” Forbes, May 24, 2011; “Vertex’s Sales Force Gears Up for ‘David vs. Goliath’ Marketing Push,” Wall Street Journal, May 24, 2011; Bill Berkrot and Lewis Krauskopf, “Vertex CEO Unfazed by Competition, Future Rivals,” Reuters, May 25, 2011.

  (pp. 288–91) Interview with John Thomson.

  (pp. 291–94) Interviews with Matt Emmens and Josh Boger.

  CHAPTER 12: June 6, 2011

  (pp. 295–99) Interviews with Ken Boger, Ian Smith, Peter Mueller, and Geoff Porges. Thomas Gryta, “Vertex Reports Positive Test of Cystic Fibrosis Combo,” Wall Street Journal, June 9, 2011; “Vertex Cystic Fibrosis Combo Shows Promise,” Reuters, June 9, 2011; Adam Feuerstein, “Vertex Cystic Fibrosis Drug Combo Hits Bump,” TheStreet June 9, 2011; Marley Seaman, “Vertex Falls on Cystic Fibrosis Study Data,” Forbes, June 9, 2011; Geoff Meacham, “Vertex Pharmaceuticals: Our Thoughts Ahead of VX-809/VX-770 Combo Data in Cystic Fibrosis,” JP Morgan North America Equity Research, May 2, 2011.

  (pp. 299–303) Interviews with Bo Cumbo, Matt Emmens, Amit Sachdev, and Michael Partridge. Julie M. Donnelly, “Vertex CEO Emmens Keeps Emphasis on Science,” Boston Business Journal, June 9, 2011; “Vertex Bolsters HCV Position with Potential $1.5B+ Alios Deal,” BioWorld, June 14, 2011; Brian Orelli, “Going for Seconds in the Hepatitis C Space,” The Motley Fool/Fool.com, June 14, 2011; Gardiner Harris, “Federal Research Center Will Help Develop Medicines,” New York Times, January 22, 2011; Geoffrey C. Porges, Amrita Rahmani, and Aleksander Rabodzey, “VRTX: More on Cracking the Code in CF: Incivek Launch Early Signals Positive,” BernsteinResearch, June 15, 2011.

  (pp. 303–7) Interviews with Keith Johnson and Ken Boger.

  (pp. 307–12) Interviews with Michael Partridge, Matt Emmens, Ken Boger, and Josh Boger. Peter Loftus, “Vertex Hepatitis Drug Takes Early Lead over Rival from Merck,” Dow Jones Newswires, June 29, 2011; “Vertex Reports Strong Initial Incivek Sales, Sees 2012 Profit,” Wall Street Journal, July 28, 2011; Adam Feuerstein, “Vertex Earnings: Incivek’s Boffo Launch,” TheStreet, July 28, 2011; Brian Orelli, “Vroom! There Goes Vertex,” The Motley Fool/Fool.com, July 28, 2011; Bill Berkrot, “New Vertex Hepatitis Drug Shines Out of Gate,” Reuters, July 28, 1011; Geoffrey Porges, Amrita Rahmani, Aleksander Rabodzey, “Vertex: Q2 Strong Early Incivek Result Suggests Consensus Could Be Crushed; CF Gathering Steam, New T/P $82,” BernsteinResearch, July 29, 2011; Adam Feuerstein, “Dendreon: Parsing Provenge’s Problems,” TheStreet, August 4, 2011; Adam Feuerstein, “Biotech Stock Mailbag: Dendreon’s Aftermath,” TheStreet, August 5, 2011; Eric Rosenbaum, “Merck Hep C Drug Draws More Attention Than Job Cuts,” TheStreet, July 29, 2011.

  (pp. 312–15) Interviews with Michael Partridge, Ian Smith, and Matt Emmens. For a survey of the federal debt ceiling “crisis,” see “Times Topics,” New York Times, http://topics.nytimes.com/topics/reference/timestopics/subjects/n/national_debt_us/index.html; Damian Paletta and Matt Phillips, “S&P Strips US of Top Credit Rating,” Wall Street Journal, August 6, 2011; Partridge’s note to employees, courtesy of the author; Luke Timmerman, “Dendreon Wounds Are Self-Inflicted, Not the Start of a Biotech Industry Virus,” Xconomy, August 8, 2011; Val Brickates Kennedy, “3 Biotech Stocks Battle the ‘Dendreon Effect,’ ” MarketWatch, August 18, 2011; Matthew Herper, “Biotech, Where Winners Lose,” Forbes, December 21, 2010; Steve Worland, “Dramatic Changes in Hepatitis C Treatment Expected to Continue,” Xconomy, September 6, 2011.

  (pp. 315–19) Interviews with Matt Emmens and Geoff Porges. Geoffrey Porges, Amrita Rahmani, and Aleksander Rabodzey, “Vertex—SCB HCV Focus Groups Point to Solid Launch, Strong Preference for Incivek,” Bernstein Research, June 23, 2011; Matthew Herper, “Could Vertex Sell $1 Billion of Its Hepatitis C Drug This Year?” Forbes, August 8, 2011; Christine Levoti, “Vertex, Merck Face Little Payer Pushback with Newly Marketed HCV Drugs,” FT.com, September 2, 2011; Adam Feuerstein, “Vertex Arthritis Pill Shines in Mid-Stage Study,” TheStreet, September 6, 2011; Ed Silverman, “Vertex CEO Chides Analyst in Front of Investors,” Pharmalot.com, September 14, 2011; Luke Timmerman, “Stirring the Pot Once in a While Doesn’t Hurt, and It Could Help Biotech Break Its Malaise,” Xconomy, September 19, 2011; Alex Philippidis, “Pfizer Edges Toward Lipitor Patent Cliff as Exclusivity Extensions Near End,” GEN, October 18. 2011.

  CHAPTER 13: September 23, 2011

  (pp. 320–24) Interviews with Matt Emmens, Josh Boger, and Mark Murcko. “Innovation and Research: The Human Factor,” Science Careers, Science, September 16, 2011; Bill Berkrot, “Analysis–Vertex Takes Early Rounds of Hep C Bout with Merck,” Reuters, September 29, 2011.

  (pp. 324–27) Interviews with Ian Smith, Michael Partridge, Josh Boger, and John Thomson.

  (pp. 327–33) Interviews with Michael Partridge, Ian Smith, Matt Emmens, and Geoff Porges. Adam Feuerstein, “Vertex’s Hep C Drug Needs a Growth Injection,” TheStreet, October 11, 2011; “Pharmasset Expands Hepatitis C Trial; Shares Rise,” Reuters, October 10, 2011; “Vertex (VRTX) Shares Sink in Late-Day Trade, Volume Picks Up,” StreetInsider.com, October 11, 2011; Alex Nussbaum, “Vertex Shares Rise on Optimism for Higher Incivek Sales,” Bloomberg, October 13, 2011; Toni Clarke, “IMS Revises Incivek Drug Data; Vertex Shares Jump,” Reuters, October 13, 2011; Julie M. Donnelly,”
Vertex Shares Rise on Hep C Drug Sales Tracking SNAFU,” Boston Business Journal, October 13, 2011; Adam Feuerstein, “Hep C Drug Updates: Vertex and Anadys,” TheStreet, October 13, 2011; Emmens’s cover letter to Vertex directors, courtesy of Emmens.

  (pp. 333–38) Obviously, I wasn’t at the meeting between Mark Murcko and Peter Mueller, but I was party to numerous conversations about it over the following days and weeks, and I was present throughout the remainder of this section. Other sources include interviews with Mark Murcko, John Thomson, Jon Moore, Paul Negulescu, Eric Olson, and Chris Wright; Ransdell Pierson and Bill Berkrot, “Abbott Says Hepatitis C Combo May Be a Blockbuster,” Reuters, October 21, 2011; Peter Mueller’s R&D reorganization email, with permission from Mueller.

  (pp. 338–42) Interviews with Matt Emmens, Ian Smith, Michael Partridge, and Nancy Wysenski. Andrew Pollack, “Vertex Bests Merck in New Hepatitis C Drug Sales,” New York Times, October 28, 2011; Adam Feuerstein, “Vertex Earns First Profit, Backed by Blockbuster Pace of Hep C Drug,” TheStreet, October 28, 2011; Luke Timmerman, “Vertex Flips into the Black for First Time, as Hepatitis C Drug Beats Expectations Again,” Xconomy, October 27, 2011.