Vertex's stock heads for all-time high as non-opioid painkiller shows promise

By Eleanor Laise

Experimental drug's pain control rivals 'gold standard' treatment, analysts say

Vertex Pharmaceuticals Inc. shares (VRTX) were on track for an all-time high Wednesday after the company released new data from a trial of its investigational non-opioid pain medicine.

The stock jumped more than 10% Wednesday morning, on pace for its largest percentage gain in more than three years, and was set to cross the $100 billion market-capitalization threshold for the first time.

The company's experimental pain medicine VX-548 produced statistically significant, clinically meaningfully reductions in pain intensity in people with diabetic peripheral neuropathy, a type of nerve damage that can affect people with diabetes, Vertex said in a release.

The pain control seen with the drug appears comparable to the "gold standard" pain medicine pregabalin, which is marketed by Viatris Inc. (VTRS) under the brand name Lyrica, Evercore ISI analyst Liisa Bayko wrote in a report Wednesday. Evercore analysts raised their price target on Vertex shares to $405, from $389 previously.

The new data on the pain medicine "looks at least as good as or better than investor expectations," Jefferies analysts said in a note Wednesday.

Vertex is working to quickly advance the treatment to Phase 3 studies in diabetic peripheral neuropathy, Vertex's chief medical officer, Dr. Carmen Bozic, said in a statement. Phase 3 results from a trial of the drug in acute pain are expected in the first quarter of next year.

Vertex and Editas Medicine Inc. (EDIT) also announced Wednesday that Vertex will license Crispr Cas9 gene-editing technology for use in medicines targeting sickle-cell disease, including Casgevy, which last week received a landmark approval from the U.S. Food and Drug Administration.

Vertex shares have gained 37% in the year to date, while the S&P 500 SPX is up 21%.

-Eleanor Laise

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12-13-23 1203ET

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