BofA Maintains a Sell Rating on GSK plc (GSK), Sets a PT of p1,510

GSK plc (NYSE:GSK) is one of the best cheap stocks under $50 to buy now. On July 15, BofA analyst Sachin Jain maintained a Sell rating on GSK plc (NYSE:GSK) and set a price target of p1,510.00.

The analyst based the rating on factors related to the company’s Blenrep drug, stating that the FDA briefing documents highlighted considerable concerns regarding its ocular toxicity and dosing.

Issues associated with these factors are central, and the FDA questioned if suitable dosages have been identified, given the poor tolerability seen in trials.

The analyst further reasoned that the high ocular toxicity rates, including keratopathy and visual acuity changes, are especially alarming, as a majority of the patients experienced severe and recurrent ocular events.

Jain also noted the limited applicability of trial results to the US markets because of the use of a comparator arm not approved in the US and low enrollment of US patients, resulting in an uncertain risk-reward balance for the drug and warranting a cautious stance.

Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global healthcare and biopharmaceutical corporation that develops and distributes a range of vaccines, medications, and consumer health items.

It is based in the United Kingdom and has over 20 vaccines in its portfolio, positioning it as a leader in vaccines, immunology, and respiratory therapies. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer in addition to other drugs.

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Disclosure: None. This article is originally published at Insider Monkey.