Vertex Pharmaceuticals Downgraded by Oppenheimer

Investing.com — Oppenheimer on Thursday downgraded Vertex Pharmaceuticals (NASDAQ:VRTX) following the Phase 2 trial results for suzetrigine, intended for the treatment of painful lumbosacral radiculopathy (LSR).

Suzetrigine demonstrated a significant reduction in pain during the trial but did not outperform the placebo, raising concerns about its efficacy.

Due to these uncertainties and the unclear benefit/risk profile of suzetrigine in LSR, Oppenheimer has downgraded Vertex's stock rating from Outperform to Perform. The price target, previously set at $540, has also been removed.

Although the drug showed a favorable safety profile with lower adverse event rates compared to the placebo, the unclear efficacy has affected its perceived benefit/risk ratio and commercial potential.

Phase 2 results indicated a mean reduction of 2.02 points in the Numeric Pain Rating Scale (NPRS) for patients on suzetrigine, while the placebo group experienced a similar reduction of 1.98 points, indicating no significant difference between the two groups.

This similarity raises doubts about the drug's effectiveness, even as Vertex plans to pursue a Phase 3 program pending discussions with the FDA.

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