Shares of Vertex Pharmaceuticals dropped 15% last week on news that its closely watched pain drug, suzetrigine, met its primary endpoint of reducing pain from baseline in a statistically significant and clinically meaningful manner, but failed to outperform a placebo in the company’s Phase 2 proof of concept sciatica study.

In the trial, suzetrigine was administered to 102 of 202 patients with lumbosacral radiculopathy (LSR), a condition in which compressed nerves in the spine lead to back and leg pain. The study employed the 11-point Numeric Pain Rating Scale (NPRS), which asks patients to rank pain from 0 (no pain) to 10 (worst pain imaginable).

Valuation. Based on our analysis of available clinical data, we expect the regulatory approval of suzetrigine for acute pain in2025, followed by accelerating revenue and EPS growth in 2026. We recommend investors begin accumulating shares of Vertex during the next 12-18 months. Our 12-month price target of $500.00 (down from $550.00) is based on 2025 projected earnings of $15.79 and a P/E multiple of 31.7x.