Vertex shares downgraded at Oppenheimer amid LSR trial uncertainties

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.

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