D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - Truist Securities lowered its price target on Vertex (NASDAQ:VRTX), a prominent player in the biotechnology industry with a market capitalization of nearly $100 billion, to $490.00 from $520.00 on Tuesday, while maintaining a Buy rating on the pharmaceutical company’s stock.
The price target reduction comes despite Vertex reporting second-quarter 2025 total revenue of $2.96 billion, which exceeded both Truist’s estimate of $2.93 billion and the Street consensus of $2.91 billion. According to InvestingPro data, the company has maintained strong revenue growth of 8.98% over the last twelve months.
Vertex’s Alyftrek launch showed strong performance with $156.6 million in revenue, significantly ahead of Truist’s $100 million projection and the Street’s estimate of $136 million, while the company maintained its fiscal year 2025 guidance.
The downward revision primarily reflects setbacks in Vertex’s pain franchise, including a no-go decision for suzetrigine and the failure of VX-993 in acute pain trials, alongside slow uptake of Casgevy in sickle cell disease 18 months after launch.
Truist expressed continued confidence in Vertex’s pipeline programs in renal inflammation and immunology, and noted interest in the company’s early discovery program in Huntington’s disease, while acknowledging that cystic fibrosis treatments remain the company’s core business.
In other recent news, Vertex Pharmaceuticals has faced multiple challenges impacting its pain management program. The company reported setbacks in its pain medication pipeline, notably with its NaV1.8 inhibitor failing to show statistical significance in trials, which has led to a reevaluation of its pain franchise strategy. Following these developments, several financial firms have adjusted their stock price targets for Vertex. H.C. Wainwright lowered its target to $478 while maintaining a Buy rating, citing potential future strategies involving NaV1.7 and NaV1.8 inhibitors. Stifel reduced its target to $455 and maintained a Hold rating after Vertex’s decision to not pursue a broad painful neuropathic pain label in Phase 3 trials. BMO Capital adjusted its target to $530, maintaining an Outperform rating, following a Phase 2 trial failure and challenges with FDA labeling for suzetrigine. RBC Capital set a new target of $405, maintaining a Sector Perform rating, due to regulatory and efficacy challenges with the NaV1.8 therapy. Lastly, Cantor Fitzgerald decreased its target to $485, maintaining an Overweight rating, after disappointing trial data and regulatory feedback on suzetrigine. These developments reflect ongoing challenges in Vertex’s pain management endeavors.
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