Drugs giant GSK saw its shares drift lower despite announcing progress on two key products yesterday.
The FTSE 100 firm said its experimental chronic hepatitis B drug bepirovirsen, branded Hibsago, had been approved in Japan.
GSK said the approval was based on late-stage studies showing it helped nearly one in five patients achieve a cure and raised hopes of a treatment course providing an alternative to lifelong antiviral pills.
It said the disease is ‘a major public health challenge and a leading cause of liver cancer globally’.
In Japan, nearly one million people live with the illness and it contributes to around 4,000 deaths annually, GSK said.
The firm has predicted bepirovirsen could bring in over £2bn in peak annual sales, taking it closer to its annual revenue target of more than £40bn.
Separately, GSK said the US Food and Drug Administration will conduct a priority review of dostarlimab, marketed as Jemperli, as a potential treatment for a type of rectal cancer.
However, shares fell 1.5 per cent. They are down 17 per cent since a peak in February.
Chris Beauchamp, chief market analyst at trading platform IG, said: ‘It’s clear that GSK still has a lot to do to convince investors.
‘It’s not often that two big bits of drug news arrive on one day, but the news has failed to inspire much of a reaction.
‘While the shares are nowhere near as expensive as in the first months of the year, GSK’s management still has much work to do to provide a more compelling investment story.’
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GSK shares drift despite drug approvals boost