Vertex Shares Downgraded at Oppenheimer Due to Uncertainties in LSR Trial

Oppenheimer downgraded Vertex Pharmaceuticals’ rating after announcing Phase 2 trial results for suzetrigine in the treatment of painful lumbosacral radiculopathy (LSR) on Thursday. Suzetrigine showed significant pain reduction in the trial but did not outperform placebo, raising questions about its efficacy.

Due to these uncertainties and the unclear benefit/risk profile of suzetrigine in LSR, Vertex’s stock rating was downgraded from Outperform to Perform at Oppenheimer. The previously set price target of $540 has also been removed.

Although the drug exhibited a positive safety profile with lower rates of side effects compared to placebo, the lack of clear efficacy impacted the perceived benefit/risk profile and commercial potential. Phase 2 results showed an average reduction of 2.02 points on the Numeric Pain Rating Scale (NPRS) in patients treated with suzetrigine. However, the placebo group experienced a nearly identical reduction of 1.98 points, showing no significant distinction between the two groups.

This similarity in results raised concerns about the drug's efficacy despite Vertex's plans to move to a Phase 3 program following discussions with the FDA.