Sell Rating on GlaxoSmithKline Due to Concerns Over Blenrep’s Ocular Toxicity and Limited US Trial Applicability

Bank of America Securities analyst Sachin Jain maintained a Sell rating on GlaxoSmithKline yesterday and set a price target of p1,510.00.

Sachin Jain has given his Sell rating due to a combination of factors related to GlaxoSmithKline’s Blenrep drug. The FDA briefing documents have highlighted significant concerns regarding the dosing and ocular toxicity associated with Blenrep. The issues of dose ranging and ocular toxicity are central, with the FDA questioning whether appropriate dosages have been identified, given the poor tolerability observed in trials. The high rates of ocular toxicity, including keratopathy and visual acuity changes, are particularly alarming, with a majority of patients experiencing severe and recurrent ocular events.
Furthermore, the applicability of the trial results to the US market is limited due to low enrollment of US patients and the use of a comparator arm not approved in the US. These factors contribute to an uncertain risk-reward balance for Blenrep, leading to Jain’s cautious stance. Despite a temporary positive market reaction, the underlying issues remain significant enough to warrant a Sell rating.

In another report released yesterday, J.P. Morgan also maintained a Sell rating on the stock with a £14.25 price target.

GSK’s price has also changed slightly for the past six months – from p1327.500 to p1402.500, which is a 5.65% increase.