Pharmaceutical firm GSK saw its shares fall on Tuesday, even as the company announced progress on two significant drug candidates. The company's stock drifted lower, closing down 1.5 percent, and remains down 17 percent from its February peak.
GSK reported that its experimental chronic hepatitis B drug, bepirovirsen (marketed as Hibsago), received approval in Japan. The company stated that late-stage studies demonstrated the drug helped nearly one in five patients achieve a cure, offering a potential alternative to lifelong antiviral medications. Hepatitis B is described by GSK as a major global public health challenge and a leading cause of liver cancer. In Japan, nearly one million people live with the illness, which contributes to approximately 4,000 deaths annually.
GSK has projected that bepirovirsen could generate over £2 billion in peak annual sales, contributing to its target of more than £40 billion in annual revenue.
In parallel, GSK announced that the U.S. Food and Drug Administration (FDA) is conducting a priority review of dostarlimab, known as Jemperli, for the potential treatment of a specific type of rectal cancer.
Despite these developments, market analysts expressed that GSK still needs to significantly convince investors of its value. "It's clear that GSK still has a lot to do to convince investors," said Chris Beauchamp, chief market analyst at IG. "It’s not often that two big bits of drug news arrive on one day, but the news has failed to inspire much of a reaction." Beauchamp added that while the shares are not as highly valued as earlier in the year, GSK's management faces the challenge of presenting a more compelling investment narrative.