Berenberg lifts GSK target to 2,200p after $750M deal

Berenberg analyst Kerry Holford upgraded GSK from Hold to Buy and raised the firm's price target to 2,200p from 2,000p on September 15. The brokerage cited increased optimism regarding GSK's growth outlook, driven by business development activity and pipeline momentum.

On the same day, GSK announced an agreement to acquire global rights to a preclinical trispecific T-cell engager for multiple myeloma from Chimagen Biosciences. The deal carries a total potential value of up to $750 million, consisting of an undisclosed upfront payment alongside development and commercial milestones. Phase I human trials are expected to begin in 2027. The agreement follows an earlier deal between both companies for CMG1A46, a dual CD19/CD20-targeted therapy currently in Phase I development.

Holford noted that as reliance on dolutegravir dilutes, GSK's valuation discount relative to pharmaceutical peers is no longer justified. The upgrade also follows GSK's completed acquisition of Nuvalent in July, an aggregate equity transaction of approximately $10.6 billion, or about $9.4 billion net of acquired cash, which added lung-cancer assets zidesamtinib and neladalkib.