Vertex Has $5 Billion-Plus Opportunity In Pain And Kidney Disease Programs, Analyst Upgrades Stock

Jefferies has upgraded Vertex Pharmaceuticals Inc. VRTX, citing the company’s robust cystic fibrosis base business and the additional upside from the new LNP/ mRNA therapy (around $1 billion opportunity) and “triple pill” regimens.

The company’s pipeline can potentially exceed expectations if the data is positive. The analyst views the risk/reward balance as mostly neutral for 2024. The pain program stands out as a potential blockbuster, especially with the upcoming launch for acute pain and chronic LSR data expected in 2025.

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Jefferies upgraded Vertex to Buy from Hold following improved fundamentals and a growing pipeline worth $5 billion-7 billion, which includes treatments for chronic pain and APOL1 kidney disease. The analyst increased the price target from $500 to $550.

A recent meeting with management indicates that their Nav 1.8 pain treatment is improving and could be combined with next-gen 1.7 and 1.8 dual mechanisms, similar to their CF combination treatments, potentially creating a $5 billion+ business.

The Phase 3 AMKD kidney trial is also progressing well, with promising results expected to lead to a $2 billion business. Investors should consider Vertex to be a valuable asset in the current market.

Due to its solid fundamentals and expanding pipeline, Vertex is a strong growth stock that should remain a favorite among general investors and long-term holders.

It’s a rare growth opportunity in the large biopharma sector, with no significant data risks expected in 2025 and no concerns over obesity-related issues.

In the near term, the analyst anticipates positive Phase 2 LSR pain data, a successful launch of Vanza for cystic fibrosis in 2025, and continued strong financial performance.

Price Action: VRTX stock is up 2.16% at $472.06 at last check Monday.

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