Vertex (NASDAQ: VRTX) non-opioid painkiller may be a game changer

Vertex Pharmaceuticals (NASDAQ: VRTX) shares are on a roll amid enthusiasm for its non-opioid painkiller Journavx. 

The stock has jumped 18% over the last month amid anticipation of regulatory approval for the drug. That came last week from the US Food and Drug Administration. Journavx is the first new non-opioid pain killer approved in the US in more than 20 years. 

The drug has huge potential, experts say. The global chronic pain market totaled $72.1 billion last year, according to estimates from Coherent Market Insights. And Precedence Research estimated that opioids accounted for $23.1 billion of that, or 32%. 

Opioids limit pain by sticking to receptors in the brain that draw nerve signals from different parts of the body. That process in the brain triggers addictive effects. And opioids — such as Oxycontin, Vicodin and Percocet — can have powerful side effects, including dizziness and sluggishness.

Journavx, on the other hand, can’t get into the brain. It repels proteins that generate pain signals which travel to the brain, unlike the opioids.

Sales could grow fast 

Wall Street analysts predict Journavx will enjoy sales of $100 million this year, rising to $1 billion in 2028, according to FactSet. That would represent about 10% of Vertex’ 2023 revenue.

The company’s sweet spot is drugs for cystic fibrosis. Almost 50% of global patients treated for the disease use Vertex medicines. The company is trying to grow its drug stable, and that’s where Journavx fits in. 

To be sure, there are some obstacles for the drug. Journavx is expensive, costing $15.50 per pill, compared to about $1.40-$1.50 for Vicodin and Oxycontin. That may discourage insurers from covering the new treatment, and hospitals may still opt to prescribe opioids. 

Also, Vertex’s trials of Journavx raised some questions. One study showed that Journavx was no more effective than a placebo in fighting lower back pain. 

In addition, the drug won’t end the opioid scourge that killed 81,000 people 2023, according to data from the Centers for Disease Control and Prevention. That’s because it’s mostly fentanyl rather than prescription opioids that left these people dead.  

Still, despite those limitations, Journavx has great potential. 

The author owns shares of Vertex.