Vertex Pharmaceuticals stock jumps as FDA approves non-opioid painkiller

UK-based Vertex Pharmaceuticals saw their stock shares soar as the US FDA signed off on the non-opioid painkiller Journavx, also known as suzetrigine, for patients with moderate to severe acute pain, caused by surgery, accidents, or injuries.

The company is hoping to eventually receive approval for chronic pain treatment, a market that has traditionally been serviced by opioid treatments. Given twice a day orally, Journavx offers treatment at USD$15.50 per pill before insurance and reimbursement schemes, with a projection of USD$12 per pill. According to Vertex, up to 80 million patients in the US receive prescriptions for medications targeting acute pain. Market forecasts project sales of Journavx to reach up to USD4$ billion in annual peak sales. Currently, Vertex’s annual sales reach approximately USD$11 billion.

In particular, Journavx’s label does not indicate addiction as a possible risk. With recent coverage of the addictive risk that comes with opioid pain treatment, this label will be “critical to utilisation”, states Leerink Partners analyst David Risinger in a report covering the medication. The new painkiller is largely set to be welcomed with approval, but some market experts are wary of the impact it will have. RBC Capital Markets analyst Brian Abrahams stated in an interview with Investor’s Business Daily that recent trials have demonstrated higher rates of side effects in those with liver disease, and the longer time for therapeutic effects to be felt – 4 hours for Journavx compared to one to one and a half hours for generic ibuprofen or naproxen. “We continue to expect a slower launch given potential access and reimbursement hurdles of a branded pain drug, especially one that is relatively modestly effective and takes some time to kick in, and view this more as a first step toward what could be larger chronic pain indications and/or more effective next gen [sodium ion channel] agents,” commented Abrahams.

Other analysts, however, were more optimistic about Vertex’s long-term gains. Forbes extrapolated Vertex’s 9% rally in after-market hours on January 30 after the approval of Journavx and its growth from 2022 to 2025 driven by a strong uptake of cystic fibrosis treatment Trikafta/Kaftrio, which drove 93% of Vertex’s total sales in 2024. Vertex stock may be set to increase, trading at 11.0x trailing revenues, with the approval of Journavx only continuing to drive this growth. Investor’s Business Daily’s interview with William Blair analyst Myles Minter demonstrated this positivity. “Despite our view that suzetrigine will face initial inertia from clinicians for use in pain management, we model Journavx as attaining blockbuster status, reaching USD$1 billion in sales by 2028 and peaking at about USD$4.9 billion in sales in 2031,” Minter stated in a client note.

Vertex cemented its commitment to growth in the pharmaceutical industry when it inked a deal with two Saudi Arabian agencies to boost the nation’s gene therapy production capabilities at last year’s first ever CPHI Middle East. The agreement will aim to generate USD$266 million (1 billion Saudi Riyal) over the next 5 years as part of the Kingdom of Saudi Arabia’s initiative to establish the nation as a biotech hub in the MENA region. In a statement, Vertex CEO Reshma Kewalramani stated “We are pleased to be working together towards our mutual goal of advancing innovation in the Kingdom, in line with Saudi Vision 2030. Vertex aims to develop and discover transformative medicines for patients with serious diseases like sickle cell disease and beta thalassemia. This partnership is a further significant step in providing such medicines to patients in the Kingdom and ensuring Saudi patients have access to cutting-edge therapies.”

Sources

1. How Painkillers Could be Vertex Pharmaceuticals’ Next $10 billion Chapter [Accessed February 3, 2025] https://www.investors.com/news/technology/vertex-pharmaceuticals-vertex-stock-non-opioid-painkiller-journavx/

2. What’s Happening with VRTX Stock [Accessed February 3, 2025] https://www.forbes.com/sites/greatspeculations/2025/01/31/whats-happening-with-vrtx-stock/

3. Vertex, Saudia Arabia ink memorandum of understanding to boost local gene therapy manufacturing [Accessed February 3, 2025] https://www.fiercepharma.com/manufacturing/vertex-saudi-arabia-sign-memorandum-understanding-boost-local-gene-therapy