GSK Shares Drop Over 5% as Blenrep Receives FDA Approval with Limited Indication

GSK (GSK.US) fell more than 5% on Friday, closing at $43.10. UBS analysts noted that GSK received FDA approval for its blood cancer drug Blenrep, a positive outcome in what was previously an uncertain decision, though somewhat overshadowed by the drug's limited indications. UBS stated that the FDA approved Blenrep as a third-line therapy—for adult patients who have undergone at least two prior treatments—rather than the second-line status GSK had hoped for.

Moreover, according to UBS, the requirement for patients to undergo ophthalmic examinations before each administration will be a disappointment for GSK. "While Blenrep's return to the U.S. market is positive news for GSK, the narrower indication scope and stringent [Risk Evaluation and Mitigation Strategy] may have reduced its commercial potential," analysts noted.