Vertex stock price target lowered to $478 at H.C. Wainwright on pain program setbacks

Published 05/08/2025, 18:14
Vertex stock price target lowered to $478 at H.C. Wainwright on pain program setbacks

Investing.com - H.C. Wainwright lowered its price target on Vertex Pharmaceuticals (NASDAQ:VRTX) to $478 from $550 while maintaining a Buy rating following setbacks in the company’s pain program. The biotech giant, currently valued at nearly $100 billion, is trading near its 52-week low of $377.85, with analyst targets ranging from $330 to $624. According to InvestingPro data, eight analysts have recently revised their earnings estimates downward.

The firm’s decision came after Vertex disclosed that its next-generation NaV1.8 inhibitor failed to demonstrate statistical significance on the primary endpoint despite achieving target exposure levels. This development suggests future advancement of Vertex’s pain franchise may depend on combining NaV1.7 and NaV1.8 inhibitors to enhance efficacy. Despite these challenges, the company maintains a GOOD financial health score according to InvestingPro analysis, with revenue growing at 9% year-over-year.

More significantly, the FDA provided end-of-Phase 2 feedback indicating that a broad label for painful peripheral neuropathy (PNP) "encompassing all neuropathic conditions" is not currently feasible. As a result, Vertex has removed its lumbosacral radiculopathy (LSR) program from Phase 3 development.

With LSR no longer in the pipeline, attention shifts to Vertex’s two diabetic peripheral neuropathy (DPN) studies, both expected to complete enrollment by 2026. In the Phase 2 DPN study, VX-548 showed promising results with a favorable risk-benefit ratio compared to pregabalin.

Vertex plans to engage with the FDA on potential future label expansions to eventually pursue a full PNP indication, either through sequential trials such as the DPN or based on combination strategies.

In other recent news, Vertex Pharmaceuticals reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $4.52 compared to the forecasted $4.27. The company also reported revenue of $2.96 billion, surpassing the anticipated $2.91 billion. Despite these positive financial results, several analysts have lowered their price targets for Vertex due to setbacks in its pain medication programs. Stifel reduced its price target to $455, citing challenges in the company’s pain program following an FDA meeting. BMO Capital also lowered its target to $530, highlighting a Phase 2 trial failure and regulatory challenges for its pain treatments. Similarly, RBC Capital adjusted its target to $405, pointing to disappointing efficacy results for Vertex’s next-generation pain therapy. Cantor Fitzgerald set a new target of $485, following negative clinical data and regulatory feedback on Vertex’s pain strategy. These recent developments reflect a mix of strong financial performance and challenges in Vertex’s pain treatment pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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