GSK - Downgrade to HOLD (TP £17.50 [£19], 7pgs)
We downgrade GSK to HOLD given the higher risk following the outcome of yesterday’s Delaware trial & the higher payout that GSK could now face. We now assume GSK pays £4bn ($100k/case) and we add a 5% uncertainty discount. Given it will be c.12mths before an appeal decision & a lack of near-term catalysts, we now see limited reasons to own the stock. The Blenrep uptake & Arexvy sales will not become visible until early Q4 and the Depe’ full P3 data is unlikely to drive ST upgrades. Our forecasts are also full. PT cut to £17.50 [£19].For access to the full note, please contact Naresh Chouhan ( )
GlaxoSmithKline is a global healthcare company. Co.'s segments include: Pharmaceuticals; Vaccines; and Consumer Healthcare. The Pharmaceuticals segment is focused on developing new medicines in respiratory, HIV, oncology and immuno-inflammation, with discovery research exploring these and other areas. The Vaccines segment has a portfolio and pipeline of vaccines to help protect people throughout life. Co. delivers vaccines to people living in over 160 countries. The Consumer Healthcare segment develops and markets consumer-preferred brands in oral health, pain relief, respiratory, nutrition/gastro-intestinal and skin health.
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