Jefferies has upgraded Vertex Pharmaceuticals Inc. (NASDAQ:VRTX), citing the company’s robust cystic fibrosis base business and the additional upside from the new LNP/ mRNA therapy (around $1 billion opportunity) and “triple pill” regimens.

The company’s pipeline can potentially exceed expectations if the data is positive. The analyst views the risk/reward balance as mostly neutral for 2024. The pain program stands out as a potential blockbuster, especially with the upcoming launch for acute pain and chronic LSR data expected in 2025.

Also Read: FDA-Approved Sickle Cell Therapies From Bluebird Bio And Vertex Join Medicaid Innovation Program

Jefferies upgraded Vertex to Buy from Hold following improved fundamentals and a growing pipeline worth $5 billion-7 billion, which includes treatments for chronic pain and APOL1 kidney disease. The analyst increased the price target from $500 to $550.

A recent meeting with management indicates that their Nav 1.8 pain treatment is improving and could be combined with next-gen 1.7 and 1.8 dual mechanisms, similar to their CF combination treatments, potentially creating a $5 billion+ business.

The Phase 3 AMKD kidney trial is also progressing well, with promising results expected to lead to a $2 billion business. Investors should consider Vertex to be a valuable asset in the current market.

Due to its solid fundamentals and expanding pipeline, Vertex is a strong growth stock that should remain a favorite among general investors and long-term holders.

It’s a rare growth opportunity in the large biopharma sector, with no significant data risks expected in 2025 and no concerns over obesity-related issues.

In the near term, the analyst anticipates positive Phase 2 LSR pain data, a successful launch of Vanza for cystic fibrosis in 2025, and continued strong financial performance.

Price Action: VRTX stock is up 2.16% at $472.06 at last check Monday.

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