In a recent interview, CNBC’s Jim Cramer highlighted the potential of Vertex Pharmaceuticals (VRTX), a biotechnology company that is developing a non-opioid drug to treat acute pain. Cramer emphasized that finding a solution to pain relief without relying on opioids is a significant concern in the healthcare industry, and Vertex may provide the answer. The company is currently conducting late-stage trials for its pain drug, VX-548, with results expected within the year. Analysts at Leerink Partners also believe that the market is undervaluing the potential of VX-548, drawing parallels between the pain market and the obesity market a few years ago.
Vertex Pharmaceuticals primarily generates revenue from its cystic fibrosis treatment Trikafta. However, the company aims to create a new class of prescription medications that can effectively relieve pain while addressing the addictive potential of opioids. Cramer stated that if Vertex succeeds, it would present the largest market opportunity in the world. In a note to clients, Leerink Partners noted their optimistic outlook for VX-548 and gave Vertex shares a buy-equivalent rating. Cramer’s Charitable Trust, which is part of the CNBC Investing Club’s portfolio, owns shares of Eli Lilly (LLY), another pharmaceutical company credited for its drug Mounjaro. While Mounjaro is currently only approved for type-2 diabetes, Lilly expects its uses to expand to obesity by the end of the year, potentially making it the best-selling drug of all time.
The development of non-opioid pain medications is gaining significant attention due to the ongoing opioid crisis. The global pain market is immense, and if Vertex’s VX-548 proves successful, it could pave the way for a revolutionary approach to pain management. This potential has attracted the interest of analysts who believe that the investment community has not fully recognized the value of VX-548. With late-stage trial results expected soon, the excitement surrounding Vertex Pharmaceuticals and its non-opioid pain drug continues to grow, positioning the company for potential success in the future.