Citi sets $575 target on Vertex, cites CF market leadership

Published 2024-11-13, 04:38 p/m
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On Wednesday, Citi initiated coverage on Vertex Pharmaceuticals (NASDAQ:VRTX) Incorporated (NASDAQ:VRTX), assigning the stock a Buy rating and setting a price target of $575. The firm's analysis highlights Vertex's strong position in the cystic fibrosis (CF) market, driven by its existing product lineup, which includes Trikafta, Kalydeco, Orkambi, and Symdeko.

The coverage notes the potential impact of Vertex's vanza triple product, a combination of vanzacaftor, deutivacaftor, and tezacaftor, which is expected to capture a significant share of the CF market following its anticipated approval. The Prescription Drug User Fee Act (PDUFA) date for this product is set for January 2, 2025. Citi projects that the vanza triple could achieve up to $8 billion in peak sales by 2030 due to its favorable tolerability profile, convenient daily dosing, and potential clinical benefits indicated by sweat chloride reduction in patients.

Additionally, the coverage mentions Vertex's collaboration with CRISPR Therapeutics on the Casgevy launch, which is advancing in sickle cell disease (SCD) and transfusion-dependent thalassemia (TDT) treatments. The firm also looks forward to the approval and launch of suzetrigine for acute pain, with a PDUFA date of January 30, 2025, noting its novel mechanism of action (MOA) and its potential as an alternative to opioids.

Vertex's early-stage pipeline is also recognized as attractive, with several assets still in the process of de-risking. These include povetacicept, VX-522, VX-880 for type 1 diabetes (T1D), inaxaplin for Alport syndrome-mediated kidney disease (AMKD), and VX-670 for myotonic dystrophy type 1 (DM1). The firm's overall assessment reflects confidence in Vertex's continued market leadership and innovation in the treatment of cystic fibrosis and other serious diseases.

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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