Vertex Pharmaceuticals’ (VRTX) stock crashed over 14% in pre-market trading on Tuesday after the company announced that its experimental pain treatment failed in a clinical trial. The setback raises concerns about the future of the program and investor confidence in Vertex’s pipeline beyond its core cystic fibrosis portfolio.
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Vertex also reported its second-quarter results for 2025 and confirmed its full-year guidance. Despite strong financial results, the drug trial setback overshadowed investor excitement, leading to a sharp drop in the stock.
VX-993 Misses Key Trial Goal
Vertex announced that its drug VX-993 did not meet the main goal in a recent Phase 2 trial.
For context, VX-993 is an experimental drug designed to block the NaV1.8 pain signal and was being tested for treating acute pain following bunion removal surgery. The treatment was meant to build on Journavx, which was approved by the FDA earlier this year for treating moderate-to-severe acute pain in adults.
Given these results, Vertex has decided not to continue developing VX-993 as a standalone treatment for acute pain.
Vertex Reports Q2 Results
In the second quarter, the company’s revenue grew 12% to $2.96 billion, beating Wall Street’s estimate of $2.91 billion. The growth was mainly driven by strong demand for its cystic fibrosis drug, Trikafta, in the U.S., as well as early sales from three newly launched treatments.
Meanwhile, the company posted a profit of $1.03 billion, or $3.99 per share, marking a significant turnaround from a loss of $3.59 billion, or $13.92 per share, in the same period last year.
Looking ahead, Vertex maintained its full-year revenue forecast of $11.85 billion to $12 billion, matching analysts’ average estimate of $11.93 billion. Vertex also noted that tariffs are expected to have little effect on its outlook.
Is Vertex a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on VRTX stock based on 12 Buys and 13 Holds assigned in the past three months. Furthermore, the average Vertex stock price target of $511.6 per share implies an upside of over 8%.
