CNBC’s Jim Cramer on Monday suggested that investors regulate Vertex Pharmaceuticals (VRTX), a biotechnology company developing a drug to treat acute pain that isn’t an opioid.
“The largest pharmacy issue [is] how can we get pain removed, or a minimum of nullified, without opiates? They’ve a plan — Vertex,” Cramer said on “Squawk on the Street.”
Vertex — which makes most of its revenue from cystic fibrosis treatment Trikafta — has late-stage trials underway for the pain drug, referred to as VX-548. Vertex has said its goal is to create a recent class of prescription medications that relieve pain and address the shortcomings of opioids, namely their addictive potential.
“I do consider that in the event that they have something, it will be the largest market opportunity in the world,” Cramer said, adding that late-stage study results for VX-548 are expected “inside the 12 months.”
In case you like this story, join for Jim Cramer’s Top 10 Morning Thoughts on the Market email newsletter free of charge.
In a note to clients Monday, analysts at Leerink Partners argued that the investment community significantly underappreciates” the potential for VX-548. The firm, which has a buy-equivalent rating on Vertex shares, said it sees similarities between the current pain market and the obesity market one to 2 years ago.
Inside the pharmaceutical industry, Cramer’s Charitable Trust, the portfolio utilized by the CNBC Investing Club, owns shares of Eli Lilly (LLY) due in part to the company’s drug Mounjaro. While Mounjaro is currently only approved by U.S. regulators to treat type-2 diabetes, Lilly expects its approved uses to expand to obesity by year-end. Cramer has said Mounjaro could grow to be the best-selling drug of all time.
Here’s a full list of the stocks in Jim’s Charitable Trust, the portfolio utilized by the CNBC Investing Club.