Analyst Whitney Ijem of Canaccord Genuity maintained a Hold rating on Vertex Pharmaceuticals (VRTX – Research Report), retaining the price target of $424.00.
Whitney Ijem has given his Hold rating due to a combination of factors related to the current market conditions and the performance of Vertex Pharmaceuticals’ new drug, Journavx. Despite the drug’s recent availability in major national and select regional retail pharmacies, there is a noticeable lack of awareness among pharmacists, which could hinder its market penetration. A survey of 20 pharmacies across 15 states revealed that while 60% had the drug in stock, only one pharmacy had dispensed it, indicating minimal initial uptake.
Additionally, the drug’s inclusion in Optum Rx’s standard commercial formularies as a Tier 3 drug suggests higher out-of-pocket costs for patients, which may limit its accessibility. Furthermore, Journavx has not been included in the formularies of several hospital systems or the VA national formulary, requiring prior authorization and potentially impacting its adoption. These factors contribute to the cautious outlook and the Hold rating, as the ultimate market opportunity for Journavx in the acute pain segment remains uncertain.
According to TipRanks, Ijem is an analyst with an average return of -2.7% and a 39.49% success rate. Ijem covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Vertex Pharmaceuticals, and Arcturus Therapeutics.
In another report released on March 5, Bernstein also maintained a Hold rating on the stock with a $445.00 price target.
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