Status of Vertex's painkiller on UnitedHealth lists poses modest challenge, BMO says

Brokerage BMO Capital Markets says the inclusion of Vertex's VRTX.O non-opioid painkiller in tier 3 on two of insurer UnitedHealth's UNH.N approved drug lists is a modest headwind

The tier 3 designation is reserved for "non-preferred" brand-name drugs that may have lower-cost options

The drug, Journavx, will likely cost more than those on tier 1 or tier 2, which usually include low-cost generics or preferred drugs on patent

Truly differentiated drugs with a tier 3 designation, such as Gilead's GILD.O Livdelzi and Roche's ROG.S Vabysmo, can still see strong uptake - BMO

The designation will likely drive some patient access headwinds as VRTX looks to establish its offering as differentiated vs cheap alternatives - brokerage

Twenty of 33 brokerages rate the stock "buy" or higher, 12 "hold" and one "sell" or lower; their median PT is $520

VRTX fell 4.2% in 2024