Sarita Kapila, an analyst from Morgan Stanley, maintained the Sell rating on GlaxoSmithKline. The associated price target is p1,345.00.
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Sarita Kapila has given her Sell rating due to a combination of factors impacting GlaxoSmithKline’s commercial prospects. The recent FDA approval of Blenrep for third-line and beyond relapsed refractory multiple myeloma, while a positive development, comes with limitations. The approval was expected for an earlier line of treatment, and the associated Risk Evaluation and Mitigation Strategies (REMS) could hinder its market uptake. Additionally, the limited addressable patient population and mixed feedback from physicians further contribute to the challenges in commercializing Blenrep.
Moreover, the competitive landscape is intensifying, particularly with the positive data from Johnson & Johnson’s Tecvayli trial, which could overshadow Blenrep’s market potential. The ongoing DREAMM-10 trial for earlier line use faces uncertainties, including potential under-dosing and an outdated control arm, which may impact its future success. These factors, combined with the forecasted peak sales of approximately £600 million in the relapsed refractory setting, suggest limited growth prospects for Blenrep, justifying the Sell rating.
In another report released yesterday, Bank of America Securities also maintained a Sell rating on the stock with a p1,434.00 price target.