Leerink Partners analyst David Risinger has maintained their neutral stance on VRTX stock, giving a Hold rating yesterday.
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David Risinger has given his Hold rating due to a combination of factors related to Vertex Pharmaceuticals’ zimislecel therapy for type 1 diabetes. The therapy shows promising potential with its robust efficacy, as evidenced by the significant insulin independence achieved by patients in the clinical trial. However, there are concerns regarding the scalability and commercial viability of the therapy, as well as the long-term durability of its benefits beyond the one-year observation period.
Additionally, the pricing strategy remains uncertain, especially in terms of cost-effectiveness benchmarks. While the initial target market for zimislecel is estimated at 60,000 patients in the US and Europe, this is a small fraction of the total type 1 diabetes population. These factors contribute to the decision to maintain a Hold rating on VRTX stock, reflecting both the potential and the uncertainties surrounding the therapy’s future commercial success.
According to TipRanks, Risinger is a 5-star analyst with an average return of 8.2% and a 51.73% success rate. Risinger covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Pfizer, and Regeneron.
In another report released yesterday, Scotiabank also maintained a Hold rating on the stock with a $442.00 price target.