Vertex initiated with a market perform at Leerink on validating pipeline, need for M&A
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Leerink has initiated Vertex Pharmaceuticals (NASDAQ:VRTX) with a market perform rating saying that the biotech needs to validate its pipeline and pursue more M&A to diversify.
The firm has a $265 price target (~2% upside based on Friday's close).

Analyst David Risinger said that while growth prospects for its cystic fibrosis drug Trikafta will increase cash flow, Vertex's pipeline also needs to shine.
He highlighted CTX001, a gene editing candidate for sickle cell disease in phase 3. Although approval could come in the second half of 2023, it "faces adoption constraints and a crowded competitive landscape."
Risinger also mentioned VX-548 for pain, which had positive phase 2 results. He added it could become a blockbuster if phase 3 data is strong.
Earlier Monday, Vertex (VRTX) agreed to purchase several product candidates from Catalyst Biosciences (CBIO).