Following the FDA’s approval of Vertex Pharmaceuticals Inc.’s non-opioid pain reliever, the company’s stock jumped ahead of Friday’s market opening.
Vertex stated in a press release late Thursday that it is the first new class of pain medication to be approved in over two decades. Shares of the pharmaceutical business (VRTX) increased 8.3% after closing the regular session down 0.7%.
Adults experiencing moderate-to-severe acute pain will be offered Journavx, also known as suzetrigine, a twice-daily oral medication that costs $15.50 per 50 milligram pill.
Conventional opioids stop pain signals from reaching the brain by binding to proteins on nerve cells. Prior to the pain impulses reaching the brain, Vertex’s therapy inhibits those proteins.
According to a second FDA statement, the medication’s effectiveness was assessed in two randomized, double-blind, placebo- and active-controlled trials of pain after bunion and stomach tuck procedures. Ibuprofen was permitted for study participants with poorer pain management. “Both trials demonstrated a statistically significant superior reduction in pain with Journavx compared with placebo,” the FDA stated.
According to Vertex, the business is also investigating the use of suzetrigine for peripheral neuropathic pain.
Analysts were not surprised by the drug’s approval and seemed to downplay its expense. Prior to the company’s own statement, Cantor analyst Olivia Brayer had anticipated that the pills would cost between $60 and $80. However, she also pointed out that rebates for chronic pain will be “much much higher given potential access issues,” and that acute pain is sometimes only treated for 14 days. Brayer’s stock is rated as overweight.
Pricing was consistent with their expectations, according to Evercore analysts Liisa Bayko and Saima Machlovi, who have Vertex an outperform rating. They had anticipated a daily pill cost of $20 to $30.
According to them, obese people who may be at risk for respiratory depression and those with a history of addiction could be important target markets for Vertex’s new medication.
The drug’s two to four-hour delayed onset is what worries them. According to the analysts, premedicating before surgery would be a workaround.
