Jim Cramer's Take on Vertex: Tackling Opioid Addiction with New Drug in Pipeline

CNBC's Jim Cramer has drawn investors' attention to Vertex Pharmaceuticals VRTX, a biotechnology company currently in the late stages of developing a non-opioid drug to treat acute pain. 

The company's potential candidate, known as VX-548, is being positioned to address the critical issue of opioid addiction.

Vertex Pharmaceuticals primarily generates its revenue from Trikafta, a cystic fibrosis treatment. 

However, their strategic shift towards addressing the pain management market has sparked excitement within the investment community. Cramer emphasized the significance of VX-548 in his recent comments.

"I do believe that if they have something, it would be the largest market opportunity in the world," Cramer said, adding that late-stage study results for VX-548 are expected "within the year."

Citing Leerink Partners, the report added that the investment community has "significantly underappreciated" the potential of VX-548. 

The analysts also draw parallels between the current pain market and the obesity market's dynamics one to two years ago, suggesting that Vertex's drug could disrupt the status quo.

In the pharmaceutical sector, Cramer's Charitable Trust, part of the CNBC Investing Club, has a vested interest in Eli Lilly And Co LLY, primarily due to the company's drug, Mounjaro. 

While Mounjaro currently has approval from U.S. regulators for treating type-2 diabetes, Lilly anticipates expanding its approved uses to include obesity treatment by the end of the year. 

Cramer has expressed optimism, suggesting that Mounjaro could become the best-selling drug.

Price Action: VRTX shares are down 1.15% at $356.46 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.