Investing.com -- Oppenheimer on Thursday downgraded Vertex Pharmaceuticals (NASDAQ:VRTX) after reporting Phase 2 trial results for suzetrigine in the treatment of painful lumbosacral radiculopathy (LSR).
Suzetrigine showed a significant pain reduction in the trial, but failed to outperform the placebo, leading to questions about its efficacy.
As a result of these uncertainties and the ambiguous benefit/risk profile of suzetrigine in LSR, the stock rating for Vertex has been downgraded to Perform from Outperform at Oppenheimer. The price target has also been removed, previously set at $540.
Despite the drug demonstrating a favorable safety profile, with lower adverse event rates compared to placebo, the lack of clear efficacy has impacted its perceived benefit/risk profile and commercial potential.
The Phase 2 results indicated a mean reduction of 2.02 points in the Numeric Pain Rating Scale (NPRS) for patients treated with suzetrigine. However, the placebo group experienced a nearly identical reduction of 1.98 points, showing no significant separation between the two groups.
This similarity in outcomes has cast doubt on the drug's effectiveness, despite Vertex's plans to move forward with a Phase 3 program, pending discussions with the FDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Should you invest $2,000 in VRTX right now?
Before you buy stock in VRTX, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is VRTX one of them?
Reveal Undervalued Stocks Now