27th Nov 2023 10:26
(Alliance News) - German bank Berenberg is looking for GSK PLC to shed some light on its "early- to mid-stage pipeline" ahead of an investor event hosted by the pharmaceutical firm later this week.
Berenberg said that while GSK's later-stage pipeline is in rude health, it is its range of possible earlier-stage products that look "sparse".
GSK hosts a virtual event dubbed "Getting Ahead of Respiratory Diseases with GSK Management" on Thursday afternoon London time.
"Is GSK committed to retaining a presence in respiratory over the long term? If so, can the earlier-stage internal pipeline be accelerated and/or will GSK continue to look for bolt-on external opportunities in this space," Berenberg analysts commented, adding that the acquisition of Bellus Health, sealed in June, could represent one of those "external opportunities".
GSK bought Quebec-based late-stage biopharmaceutical firm Bellus in a USD2.0 billion deal.
Elsewhere, a focus for Berenberg will be on GSK's "chronic cough landscape".
"Competitor Merck & Co continues to struggle to convince the US regulator to back gefapixant. As such, GSK's camlipixant now has the potential to be first to market in the US. Have Merck's setbacks changed GSK's expectations for camplixant's potential? How confident is management that its P3 design will satisfy the FDA," analysts at the German bank said.
Merck earlier in November said a Food & Drug Administration advisory committee voted 12 to 1 that evidence does not show that "gefapixant provides a clinically meaningful benefit to adults with refractory or unexplained chronic cough".
Finally, GSK's "respiratory portfolio" is something Berenberg will want some more clarity on, with the end of Nucala's US data exclusivity protection looming in 2027. The medication treats severe asthma.
Berenberg added: "Can depemokimab offer a superior profile to Nucala, or is a more convenient dosing regimen the key differentiator? Given Nucala will lose US data exclusivity protection in 2027, can we assume that a positive readout from the Nucala [chronic obstructive pulmonary disease] study would be quickly followed by an equivalent pivotal trial for depemokimab? What other indications will GSK seek for depemokimab?"
Berenberg rates GSK at 'buy' with a GBP16.50 price target. Despite "litigation risk", the German bank believes GSK gas a "compelling valuation". GSK shares were largely flat at 1,423.20 pence each in London on Monday morning.
"GSK trades at a 25% discount to global peers. GSK trades 30% below the value of its marketed assets," Berenberg added.
By Eric Cunha, Alliance News news editor
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