GlaxoSmithKline (LON:GSK) has inked a deal to sell the rights to its prospective psoriasis treatment tapinarof, the blue-chip group has said. The move comes ahead of the London-listed drugmaker’s second-quarter results announcement on July 25.
GSK’s share price surged in the previous session, adding 1.51 percent to close at 1,576.60p, outperforming the broader UK market, with the benchmark FTSE 100 index adding 59.37 points to end the session 0.78 percent higher at 7,651.33. The pharmco’s shares have lost a little over three percent of their value over the past year, as compared with an over three-percent rise in the Footsie.
GSK sells rights to tapinarof
GSK announced in a statement yesterday that it had inked a deal to sell the rights to tapinarof, an investigational therapeutic aryl hydrocarbon receptor modulating agent (TAMA) for the treatment of psoriasis and atopic dermatitis and back-up programmes, to Dermavant Sciences, a subsidiary of biopharma group Roivant Sciences. The deal, which is expected to complete during the second half of the year, will see the FTSE 100 group land an initial payment of £150 million and a potential future milestone payment of £100 million. At closing of the transaction, Dermavant will acquire all global rights to tapinarof, except in China.
“We have taken a strategic decision to divest or partner medicines in our R&D portfolio that are a better fit for other companies allowing us to concentrate our resources on other promising assets,” John Lepore, MD, Senior Vice President, R&D pipeline, GSK, commented in the statement. The sale comes after it recently emerged that Coca-Cola is mulling a £3-billion swoop for the pharmco’s Horlicks business.
Analysts on blue-chip pharmco
Barclays reaffirmed GSK as an ‘overweight’ this week, without specifying a price target on the shares, while JPMorgan Chase & Co, which sees the pharmco as a ‘neutral,’ set a valuation of 1,550p on the stock. According to MarketBeat, the blue-chip drugmaker currently has a consensus ‘hold’ rating and an average price target of 1,568.81p.