Vertex Pharmaceuticals named ‘Catalyst Driven Idea’ at Morgan Stanley

Morgan Stanley named Vertex Pharmaceuticals as a “Catalyst Driven Idea” ahead of topline data from a series of Phase 2/3 studies of VX-548 for pain that are expected in Q4 and early 2024. In a scenario where VX-548 demonstrates clinically meaningful pain reduction versus Lyrica, the firm would expect Vertex shares to trade up 6%-10%, with the magnitude of the stock movement dependent on if one or both studies are superior. In a scenario where VX-548 demonstrates numerically better or similar pain reduction to Lyrica, the firm would expect shares to trade up 2%-4%. In a scenario where VX-548 demonstrates less favorable pain reduction to Lyrica or the study reports treatment-related cardio adverse events, the firm would expect Vertex shares to trade down 6%-10%. Morgan Stanley has a Equal Weight rating and $359 price target on Vertex shares.