| 
         
          |  
               
                Direct-acting 
                  agents that interfere with the HCV lifecycle promise to revolutionize 
                  treatment of chronic hepatitis C. Most studies of these drug 
                  candidates so far have combined them with standard therapy consisting 
                  of pegylated interferon 
                  (Pegasys or PegIntron) plus ribavirin, producing higher 
                  sustained response rates with shorter courses of treatment. While 
                  these new HCV drugs will initially be used in combination with 
                  pegylated interferon, researchers have begun testing combinations 
                  of direct-acting agents that target different steps of the 
                  viral lifecycle, for example a protease inhibitor plus a polymerase 
                  inhibitor -- resembling combination antiretroviral therapy for 
                  HIV. Some recent studies have combined targeted agents with 
                  just ribavirin, creating all-oral regimens that may reduce the 
                  risk of relapse. However, 
                  recently reported study data indicate that one such combination 
                  -- 1125 mg telaprevir plus 400 mg VX-222 administered twice-daily 
                  for 12 weeks -- was not as effective as regimens that also included 
                  interferon and/or ribavirin, leading to greater likelihood of 
                  viral breakthrough and therefore lower rates of sustained virological 
                  response. Below 
                  is an edited excerpt from a Vertex press release describing 
                  the trial modifications. 
              
                Vertex 
                  Provides Update to Ongoing Phase 2 Study Evaluating Combinations 
                  of Telaprevir and VX-222 for the Treatment of Hepatitis C 
                
                  - 
                    Two-drug treatment arm of telaprevir and VX-222 alone discontinued.
 - Study continues with three arms, including all-oral combination 
                    of Vertex's lead protease and polymerase inhibitors with ribavirin.
 
 - Both of the four-drug treatment arms are fully enrolled; 
                    the majority of patients in these arms have reached 8 weeks 
                    or more of treatment.
 
 
 
                Cambridge, 
                  Mass. -- December 21, 2010 -- Vertex Pharmaceuticals Incorporated 
                  (Nasdaq: VRTX) today announced a modification of its Phase 2 
                  clinical trial evaluating 12-week, response-guided regimens 
                  of its lead investigational hepatitis C virus (HCV) protease 
                  inhibitor, telaprevir, in combination with its lead investigational 
                  HCV polymerase inhibitor, VX-222. The company has discontinued 
                  the second two-drug treatment arm of telaprevir and VX-222 alone 
                  as a result of meeting a pre-defined stopping rule related to 
                  viral breakthrough. This two-drug arm was designed to evaluate 
                  a 12-week combination regimen of VX-222 (400 mg) and telaprevir 
                  (1,125 mg) dosed twice daily without pegylated-interferon and 
                  ribavirin. The first two-drug arm was discontinued in October 
                  2010 and was designed to evaluate a 12-week combination regimen 
                  of VX-222 (100 mg) and telaprevir (1,125 mg).
 The study will continue as planned with three treatment arms. 
                  Two of the treatment arms are fully enrolled and are evaluating 
                  four-drug combinations of telaprevir (1,125 mg), VX-222 (400 
                  mg or 100 mg), Pegasys (pegylated-interferon 
                  alfa-2a) and Copegus (ribavirin). The last patient was randomized 
                  and began treatment with a four-drug regimen in November 2010. 
                  There are patients in the four-drug treatment arms who have 
                  recently started treatment and have not yet reached week 8 of 
                  therapy. More than half of patients in the treatment arms have 
                  received eight weeks or more of treatment and approximately 
                  one third of patients are in weeks 10 through 12 of treatment. 
                  Some patients in this study have completed therapy. Interim 
                  data from both of the four-drug treatment arms are expected 
                  in the first quarter of 2011. In November 2010, Vertex announced 
                  the planned addition of a new three-drug treatment arm designed 
                  to evaluate the potential of an all-oral, interferon-free regimen 
                  of telaprevir (1,125 mg), VX-222 (400 mg) and ribavirin dosed 
                  twice daily. Enrollment in this new treatment arm is expected 
                  to begin in the first quarter of 2011.
 
 "This trial has provided important information regarding 
                  telaprevir and VX-222-based combination regimens, and three 
                  of the five treatment arms are proceeding as planned," 
                  said Robert Kauffman, MD, PhD, Senior Vice President and Chief 
                  Medical Officer for Vertex. "We are pleased with the progress 
                  of both four-drug treatment arms and look forward to the first 
                  quarter of 2011 when on-treatment data from these arms will 
                  become available and enrollment in the three-drug treatment 
                  arm is expected to begin."
 
 About the Ongoing Phase 2 Trial of Telaprevir and VX-222
 
 In August 2010, patients enrolled in this randomized, parallel-group, 
                  dose-ranging Phase 2 trial started receiving treatment. The 
                  primary endpoint of this trial is to assess safety and tolerability 
                  of 12-week, telaprevir/VX-222-based combination therapy in people 
                  with genotype 1 chronic hepatitis C. A secondary endpoint of 
                  this study is to assess on-treatment antiviral activity and 
                  the proportion of patients in each study arm who achieve a sustained 
                  viral response (SVR; defined as undetectable HCV RNA 24 weeks 
                  after the end of treatment). Patients who meet the response-guided 
                  criteria during treatment (undetectable HCV RNA at week 2 and 
                  week 8 of treatment) stop all therapy at week 12.
 
 The planned addition of the three-drug treatment arm to the 
                  study took into account an initial review of adverse events 
                  among people treated with telaprevir/VX-222 combination regimens 
                  in this study. Enrollment in this new study arm is expected 
                  to begin in the first quarter of 2011 pending completion of 
                  institutional review board (IRB) approvals and consultations 
                  with regulatory agencies. A sixth and final arm may be added 
                  to the trial per protocol based on data from the study expected 
                  in the first quarter of 2011.
 
 European and United States Regulatory Submissions for Telaprevir
 
 On December 17, 2010, Janssen-Cilag International NV announced 
                  the submission of a Marketing Authorization Application (MAA) 
                  to the European Medicines Agency (EMA) for telaprevir in combination 
                  with pegylated-interferon and ribavirin for the treatment of 
                  people with genotype 1 hepatitis C. Additionally, Janssen announced 
                  that the EMA has accepted telaprevir for accelerated assessment, 
                  which is granted to new medicines of major public health interest. 
                  In November 2010, Vertex announced it has completed the submission 
                  of a New Drug Application to the U.S. Food and Drug Administration 
                  for telaprevir in combination with pegylated-interferon and 
                  ribavirin for the treatment of people with genotype 1 hepatitis 
                  C. The submission included a request for six-month Priority 
                  Review, which can be granted for several reasons, including 
                  if the medicine is considered a major advance in treatment.
 
 Telaprevir is being developed by Vertex Pharmaceuticals in collaboration 
                  with Tibotec BVBA and Mitsubishi Tanabe Pharma. Vertex has rights 
                  to commercialize telaprevir in North America. Through its affiliate, 
                  Janssen, Tibotec has rights to commercialize telaprevir in Europe, 
                  South America, Australia, the Middle East and certain other 
                  countries. Mitsubishi Tanabe Pharma has rights to commercialize 
                  telaprevir in Japan and certain Far East countries.
 
 About Telaprevir and VX-222
 
 Telaprevir is an investigational, oral inhibitor of HCV protease, 
                  an enzyme essential for viral replication. VX-222 is an investigational, 
                  oral, non-nucleoside inhibitor of HCV NS5B polymerase. Vertex 
                  added VX-222 to its development pipeline as part of the acquisition 
                  of ViroChem Pharma Inc. in March 2009. Vertex retains worldwide 
                  commercial rights to VX-222.
 
 About Vertex
 
 
  Vertex 
                  Pharmaceuticals Incorporated is a global biotechnology company 
                  committed to the discovery and development of breakthrough small 
                  molecule drugs for serious diseases. The company's strategy 
                  is to commercialize its products both independently and in collaboration 
                  with other pharmaceutical companies. Vertex's product pipeline 
                  is focused on viral diseases, cystic fibrosis, inflammation, 
                  autoimmune diseases, epilepsy, cancer and pain. For more information, 
                  see www.vrtx.com. 
              
                1/7/11
 SourceVertex 
                  Pharmaceuticals. Vertex Provides Update to Ongoing Phase 2 Study 
                  Evaluating Combinations of Telaprevir and VX-222 for the Treatment 
                  of Hepatitis C. Press release. December 21, 2010.
 
                                           |  
          |  |  |   |