Vertex Falls After FDA Halts Diabetes Study in Surprise Move (2)

Vertex Pharmaceuticals Inc. tumbled after U.S. regulators placed its study of a key new treatment for type 1 diabetes on clinical hold.

The Food and Drug Administration paused the early-stage study after determining that there is insufficient evidence to support increasing dosage of the product, VX-880, Vertex said Monday in a statement. The drugmaker said it’s “surprised” by the decision because findings have been promising in the first two patients treated with half of the target dose.

Vertex was informed by the FDA of the clinical hold “very recently,” said company spokesperson Heather Nichols. Nichols said Vertex is trying ...