Vertex Pharmaceuticals downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Vertex Pharmaceuticals (VRTX) to Market Perform from Outperform with a price target of $503, down from $550. The firm moved to the sidelines pending future updates on Journavx formulary access, prescription uptake, and net pricing. The driver of the downgrade is that Leerink no longer expects Journavx acute pain sales and formulary access to surprise on the upside, the analyst tells investors in a research note. The firm had previously assumed the vast majority of U.S. covered lives would have outpatient access with no restrictions, but on the Q1 results call, management communicated that broad unrestricted access is a goal rather than a high-conviction outcome. As a result, Leerink cut Journavx sales projections.