Vertex Pharmaceuticals (NASDAQ:VRTX) stock gained over 13% yesterday and hit a new 52-week high of $406 per share. The upside can be attributed to positive results for the Phase 2 trial of its pain medicine, VX-548. The company said that the drug showed a statistically significant reduction in pain caused by diabetes-related nerve damage.
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The drug was tested for over 12 weeks in about 160 patients suffering from painful diabetic peripheral neuropathy. More than 30% of the patients reported a reduction in their pain levels by more than half, while 20% of the trial’s participants experienced a 70% reduction in pain levels.
It is worth mentioning that Vertex is conducting Phase 3 studies for VX-548 in the treatment of acute pain, with results anticipated in the first quarter of 2024. Also, VRTX plans to initiate a Phase 2 study in lumbosacral radiculopathy to expand the scope of this promising drug. Overall, the company expects VX-548 to become a viable alternative to opioid prescriptions for pain management.
Is VRTX a Buy, Sell, or Hold?
Following the announcement of the trial results, VRTX stock received four Buy ratings and one Hold. Goldman Sachs analyst Salveen Richter estimates that the promising chronic pain trial results unlock a potential total addressable market exceeding $9 billion for VX-548. Richter reiterated a Buy rating on the stock with a price target of $442 per share.
Overall, Wall Street analysts have a Moderate Buy consensus rating on Vertex based on 16 Buys and seven Holds. After having gained about 42% so far in 2023, the average VRTX price target of $394.26 per share implies 2.7% downside potential.
