AbbVie drops cystic fibrosis program, Vertex celebrates
Shares of Vertex Pharmaceuticals (NASDAQ:VRTX) rose by 5% on Thursday following the announcement by AbbVie Inc (NYSE:ABBV) that it will be discontinuing its cystic fibrosis (CF) program. Analysts from JPMorgan noted that this decision reinforces Vertex’s position as the dominant player in the CF market.
They believe that this update removes a significant competitive threat and paves the way for further growth of Vertex’s Trikafta, which recently received FDA approval for treating children aged 2-5 with certain mutations. Additionally, the decision removes a potential risk in the near term, allowing investors a cleaner view of Vertex’s upcoming pipeline updates.
The analysts reiterated their Overweight rating on the stock and believe that Vertex is entering a dynamic phase as its pipeline becomes increasingly de-risked.