CNBC’s Jim Cramer suggested Monday that investors should keep an eye on Vertex Pharmaceuticals (VRTX), a biotechnology company that is developing a non-opioid drug to treat acute pain.
“The biggest pharmacy problem [is] How can we eliminate or at least reverse pain without opiates? “They have a plan – Vertex,” Cramer said in “Squawk on the Street.”
Vertex – which derives most of its revenue from cystic fibrosis treatment Trikafta – is currently conducting late-stage trials for painkiller VX-548. Vertex has said its goal is to develop a new class of prescription drugs that relieve pain and address the drawbacks of opioids, namely their addictive potential.
“I believe it would be the biggest market opportunity in the world if they had something,” Cramer said, adding that late-stage study results for VX-548 are expected “within the year.”
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In a note to clients Monday, Leerink Partners analysts argued that the investment community significantly underestimated VX-548’s potential in the obesity market one to two years ago.
Within the pharmaceutical industry, Cramer’s Charitable Trust, the portfolio used by CNBC Investing Club, owns shares of Eli Lilly (LLY), thanks 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 to expand its approved uses to include obesity by year’s end. Cramer said Mounjaro could become the best-selling drug of all time.
Here is a complete list of stocks in Jim’s Charitable Trust, the CNBC Investing Club portfolio.