2023-05-04 15:36:19 ET
Despite a YTD gain of ~21% in its shares, Piper Sandler analyst Christopher Raymond assumed coverage of Vertex Pharmaceuticals ( NASDAQ: VRTX ) with an Overweight rating and a $385 per share target on Thursday, noting further upside from the company’s cystic fibrosis (CF) franchise.
With AbbVie ( ABBV ) discontinuing its CF program, VRTX’s CF franchise has underappreciated potential in the near term despite its slow but stable growth, Raymond argued.
The analyst also expects approval of gene-edited therapy CTX001 developed by Vertex ( VRTX ) and CRISPR Therapeutics ( CRSP ) for beta-thalassemia and sickle cell disease later this year or early next year following a potential priority review.
Additionally, Raymond argues that the company’s pain candidate VX-548 can indicate “massive upside potential, even when modeling conservative uptake.”
Raymond sees exciting times for VX-548 ahead of a Phase 3 readout in 2023, given its novel mechanism of action, oral administration, non-addictive profile, and Phase 2 proof of concept data.
“Given this, even with the stock’s recent outperformance, we do not think it’s too late to jump on this train,” the analyst wrote.
More on Vertex
- Vertex gains as AbbVie ends cystic fibrosis development program
- Vertex, CRISPR finish rolling submission of application for sickle cell candidate
- CRISPR And Vertex: ICER Sheds Light On The Future Of Sickle Cell Treatment
For further details see:
Vertex assumed Overweight at Piper Sandler despite recent rally