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Investing.com - BMO Capital lowered its price target on Vertex Pharmaceuticals (NASDAQ:VRTX) to $530.00 from $557.00 on Tuesday, while maintaining an Outperform rating on the stock. The biotech giant, currently trading at $392.78 with a market capitalization of $101.21 billion, maintains a GOOD financial health score according to InvestingPro analysis.
The price target reduction follows setbacks in Vertex’s pain medication pipeline, including a Phase 2 clinical trial failure for its ’993 compound and challenges in securing broad labeling from the FDA for suzetrigine in peripheral neuropathic pain (PNP). Despite these challenges, InvestingPro data shows the company maintaining steady revenue growth of 8.98% and historically low price volatility.
BMO Capital noted these pipeline issues would likely pressure Vertex shares despite the company posting strong commercial results, with "double-digit beats across almost all assets" in its recent quarterly performance.
The research firm highlighted Journavx as a bright spot, reporting that the drug is showing "positive commercial uptake" and contributing to Vertex’s revenue growth potential.
BMO’s revised $530 price target reflects a reduced probability of success for suzetrigine’s approval in peripheral neuropathic pain, which the firm now estimates at 10%.
In other recent news, Vertex Pharmaceuticals reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $4.52, compared to the forecasted $4.27. The company also reported revenue of $2.96 billion, exceeding the anticipated $2.91 billion. Meanwhile, RBC Capital lowered its price target for Vertex to $405.00 from $430.00, maintaining a Sector Perform rating. This adjustment was due to setbacks in Vertex’s pain franchise, including limited regulatory paths and disappointing efficacy results for the Nav1.8 ’993 therapy. Similarly, Cantor Fitzgerald reduced its price target on Vertex to $485.00 from $535.00, while keeping an Overweight rating. The decision followed disappointing clinical data from Vertex’s VX-993 bunionectomy trials and negative regulatory feedback on a potential broad peripheral neuropathic pain label for suzetrigine. These developments highlight the challenges faced by Vertex in its pain management strategies.
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