Vertex Pharmaceuticals: Alyftrek Is An 'Accretive Opportunity' On Top- And Bottom-Lines, Says Bullish Analyst

Vertex Pharmaceuticals Inc VRTX last week announced that the Phase 2 study of suzetrigine for painful lumbosacral radiculopathy (LSR) had met its primary endpoint.

The company announced that the FDA had approved Alyftrek (or vanzacaftor triple) in cystic fibroris (CF) six years and older, in-line with expectations, according to Goldman Sachs.

Analyst Salveen Richter maintained a Buy rating for Vertex Pharmaceuticals and price target of $602.

The Vertex Pharmaceuticals Thesis: During the initial launch of Alyftrek, the company is likely to target those patients who had previously started on one of its CFTR modulators but have discontinued over time, Richter said in the note.

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Alyftrek expands the company's CF franchise to address around 6,000 such patients, he added.

Vertex Pharmaceuticals could also target patients who are currently on one of its other CF therapies, the analyst stated.

"Importantly, in addition to serving as a top-line growth opportunity, vanzacaftor enables higher margins and is dosed once daily, which provides incentive for switching notably in younger age groups," Richter wrote. This means Alyftrek provides the company with an "accretive opportunity" on both the top- and bottom-lines, he further said.

VRTX Price Action: Shares of Vertex Pharmaceuticals had declined by 0.38% to $395.75 at the time of publication on Monday late morning.

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