The healthcare team at Citi has turned positive on GSK PLC (LSE:GSK, NYSE:GSK) for the first time in seven years.
Pushing the investment bank's analysts over the precipice to 'buy' was the outlook for belantamab mafodotin, (known as Blenrep for short), the drug giant's treatment for the blood disease myeloma.
"Our upgrade is based not only on Blenrep’s underappreciated revenue potential but also the cumulative impact of the multiple incremental positives ranging from Zantac liability outlook, RSV/ Shingrix, astute business development, and increasingly positive ViiV outlook post dolutegravir loss of exclusivity," Citi said in a note to clients.
Its upbeat stance on Blenrep stems from the "compelling" results from GSK's DREAMM-7 phase III clinical trial. Assuming the next set of study results are positive, then the drug "has a significant role for at least the next five years as a standard of care for refractory myeloma patients, particularly for older patients that are either poor candidates for CAR-T or bispecifics, or who receive their treatment within the community".
In early trade, the shares were up 14.34p at 1,640.74p. Citi reckons the stock is worth £21 (up from £17).