Vertex Has a Head Start in Non-Opioid Pain. Eli Lilly Just Spent Billions to Catch Up. Here's What That Means for Both Stocks.
These companies don't typically compete directly with one another, but that might change soon.
Vertex Has a Head Start in Non-Opioid Pain. Eli Lilly Just Spent Billions to Catch Up. Here's What That Means for Both Stocks.
Overview
Vertex Pharmaceuticals (NASDAQ: VRTX) and Eli Lilly (NYSE: LLY) are two leading drugmakers that dominate their respective core therapeutic areas. Vertex has a monopoly in the market for drugs that treat cystic fibrosis (CF), a rare disease that affects patients' lungs. Eli Lilly leads the market for anti-obesity medicines and has a strong presence in diabetes care. Despite their strong performances in these fields, both are actively trying to decrease their exposure to their most important markets. What's more, Vertex and Eli Lilly have chosen a diversification path that puts them on an eventual collision course. Here's what investors should know.
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There are plenty of medicines to help patients who suffer from acute or chronic pain. However, many options carry significant potential side effects. For instance, opioid-based pain medications can cause gastrointestinal side effects, but those are mild compared to the possibility that patients will develop dependence -- or perhaps even addiction -- to them. That's why there is a need for new, non-opioid options. Vertex Pharmaceuticals has made significant strides in that direction. Last year, it received approval for Journavx to treat moderate-to-severe acute pain. It became the first oral non-opioid pain signal inhibitor to receive the green light from the U.S. Food and Drug Administration.
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Originally published at www.fool.com.
