Oppenheimer downgrades Vertex after lumbosacral radiculopathy study

Oppenheimer downgraded Vertex Pharmaceuticals (VRTX) to Perform from Outperform without a price target after the company announced results from its Phase 2 study of suzetrigine in people with painful lumbosacral radiculopathy. The stock in afternoon trading is down 12% to $392.14. Although suzetrigine demonstrated a clinically meaningful within-group pain reduction, the placebo arm showed a nearly identical reduction, resulting in no clear separation between the two groups, the analyst tells investors in a research note. The firm says post-hoc analyses raise concerns on the robustness and the potential to demonstrate efficacy in subsequent trials despite Vertex’s plans to advance into a Phase 3 program pending FDA discussions. It cites an uncertain benefit and risk profile of suzetrigine in lumbosacral radiculopathy, and doubts on its commercial potential in acute paid ahead of the January 30, 2025, FDA action date for the downgrade.