Vertex (VRTX) PT Lowered to $411 at Canaccord Genuity

Canaccord Genuity analyst Whitney Ijem lowered the price target on Vertex (NASDAQ: VRTX) to $411.00 (from $424.00) while maintaining a Hold rating.

The analyst commented: "VRTX's 2Q report was uneventful on the commercial side as the co delivered a slight topline beat but reiterated guidance (see below for details). Pipeline updates were more interesting. The good news: the co plans to resume dosing with VX-522 (inhaled mRNA for CF) following DSMB review of previously announced tolerability issues; we suspect changes in dose and/or frequency have been implemented. The not good news: negative updates in pain, incrementally negative updates for pove. On the former, there's a shift in the chronic pain strategy following FDA feedback that limits VRTX's potential first approval to DPN (~2M US patients) vs. the broad PNP label (~10M patients) it was trying for. The co also announced VX-993 (more potent Nav1.8 inhibitor) did not show a stat sig benefit vs. placebo in a Ph2 (of note, the Vicodin comparator arm did). There was a dose response in terms of exposure, but lack of efficacy differentiation suggests the co has hit the limit of Nav1.8 targeting; expect a bigger focus on Nav1.8+Nav1.7 combos going forward. On pove, everything is tracking well with IgAN and pMN, but the co has prioritized 2 smaller indications for further development (leaving behind the larger and previously highlighted LN and AAV opportunities for now). Maintain HOLD."

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