Bank of America Securities analyst Sachin Jain has maintained their bearish stance on GSK stock, giving a Sell rating yesterday.
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Sachin Jain has given his Sell rating due to a combination of factors related to GlaxoSmithKline’s recent approval of Blenrep. Although the FDA approval of Blenrep is a positive development, the approval comes with a restrictive label and stringent Risk Evaluation and Mitigation Strategies (REMS). The approval is limited to the DREAMM-7 trial data, which excludes Darzalex-refractory patients, thus narrowing the potential patient population.
Furthermore, the approval is restricted to third-line (3L+) treatment, whereas GlaxoSmithKline had sought approval for second-line (2L+) treatment. This limitation significantly reduces the potential market for Blenrep. Additionally, the REMS requirements in the US are more onerous compared to other regions, requiring frequent ophthalmic exams, which could deter both patients and healthcare providers. Given these constraints, Sachin Jain struggles to see significant upside to the consensus sales forecasts for Blenrep, leading to the Sell rating.
In another report released yesterday, J.P. Morgan also maintained a Sell rating on the stock with a £14.00 price target.
GSK’s price has also changed moderately for the past six months – from p1379.000 to p1646.500, which is a 19.40% increase.