Vertex Pharmaceuticals announced promising test results for its opioid alternative on Thursday, sending VRTX stock deeper into breakout territory.
The biotech company tested its pain drug in patients following bunion removal and abdominoplasty, a procedural commonly referred to as a tummy tuck. In both studies, a high dose of Vertex's drug, dubbed VX-548, led to greater pain relief than a placebo and a standard treatment regimen.
Now, Vertex plans to begin pivotal studies in the second half of the year.
"The remarkable consistency in the safety, tolerability and (effectiveness) results in these two studies demonstrate the potential of VX-548 to be a first-in-class non-opioid treatment for acute pain," Vertex Chief Medical Officer Carmen Bozic said in a written statement.
On today's stock market, VRTX stock advanced 1.7% to 260.97.
VRTX Stock: Pain Relief Over 48 Hours
Vertex's drug works by blocking a channel in the peripheral nervous system involved in sending pain signals to the brain.
The studies examined pain relief over 48 hours. In the bunionectomy study, patients who received a high dose of VX-548 reported the most pain relief, followed by those who received standard drugs. Midsized and low-dose recipients reported lower levels of pain relief.
Similarly, a high dose and midsized dose of VX-548 led to greater pain relief than standard medicine among the abdominoplasty patients. Vertex didn't test a low dose of its drug in this group.
The news helped push VRTX stock into a buy zone above an entry at 255.03 out of a cup base. Shares first broke out Monday, according to MarketSmith.com.
In both studies, the most common side affects were nausea and headache. Abdominoplasty patients also reported constipation, dizziness and vomiting. In the latter group, one patient who received a midsized dose of VX-548 experienced a serious side effect. But it wasn't related to the drug.
Vertex Sees Massive 2022 Gain
Shares of Vertex started a meteoric ascension last October and are now trading at their highest point since October 2020.
Bullishly VRTX stock has an IBD Composite Rating of 96 out of a best-possible 99. This means shares are among the leading 4% of all stocks in terms of fundamental and technical performance, according to IBD Digital.
By stock performance, Vertex ranks in the top 7% of all stocks with a Relative Strength Rating of 93.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
