J.P. Morgan Maintains a Sell Rating on GSK plc (GSK)

GSK plc (NYSE:GSK) is one of the best pharma stocks to invest in. J.P. Morgan analyst Richard Vosser maintained a Sell rating on GSK plc (NYSE:GSK) on December 8, setting a price target of £17.00.

In a separate development, GSK plc (NYSE:GSK) announced on November 20 that its subsidiary, TESARO, Inc., confirmed the initiation of litigation against AnaptysBio, Inc. in the Delaware Chancery Court, contending that the recent conduct by AnaptysBio is in material breach of the existing license agreement with TESARO about Jemperli.

According to the company, TESARO is entitled to terminate the current license agreement due to the breach, make a 50% reduction in royalties and milestone payments due by TESARO to AnaptysBio, and attain a perpetual and irrevocable license to dostarlimab.

It further reported that the litigation was initiated by TESARO after the allegations by AnaptysBio that the former did not fulfil certain license agreement requirements stipulated in March 2014 and that AnaptysBio intends to revoke TESARO’s licence for dostarlimab. Management reported that TESARO and GSK plc (NYSE:GSK) firmly believe that the allegations are meritless.

At present, Jemperli holds approval in more than 35 countries for use in particular endometrial cancers, which is the most common gynaecologic cancer in the United States. GSK plc (NYSE:GSK) and TESARO have reported considerable growth for Jemperli, supported by label expansions in endometrial cancer, including in the EU and the US. In addition, a clinical program focused on evaluating the treatment’s potential use in other cancers, such as colon, rectal, and head and neck, is also underway.

Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global biopharma company 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. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer, among others.

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