GSK PLC Faces Challenges Amid FDA Setback and Analyst Downgrades

On July 18, 2025, GSK PLC, a leading research-based pharmaceutical company, encountered significant challenges that impacted its stock performance. The company, which operates in the Health Care sector and is listed on the London Stock Exchange, specializes in a wide range of pharmaceutical products, including vaccines, prescription medicines, and health-related consumer products.

FDA Advisory Panel Votes Against Blenrep Combo

A major blow came when an FDA advisory panel voted against the approval of GSK’s Blenrep combination therapy for blood cancer. This decision was primarily due to concerns over eye safety, as highlighted by multiple sources including Zacks.com and Benzinga.com. The negative vote from the FDA panel has raised concerns about the drug’s future prospects in the U.S. market.

Stock Performance and Market Reaction

Following the FDA panel’s decision, GSK’s shares experienced a significant decline. Reports from various financial news outlets, including Shares Magazine and Avanza.se, noted a 5% drop in GSK’s stock price. This decline was attributed to the negative recommendation from the FDA panel, which has cast doubt on the drug’s approval prospects.

Analyst Ratings and Price Targets

In addition to the FDA setback, GSK faced downgrades from analysts. Bank of America (BofA) maintained a “Sell” rating on GSK, setting a price target of £1,510, as reported by Insider Monkey and Yahoo Finance. This downgrade reflects concerns about the company’s near-term prospects, particularly in light of the recent FDA decision.

Impact on European and Global Markets

The negative developments surrounding GSK also had a broader impact on the healthcare sector and European stocks. Financial Post reported that GSK’s shares weighed on the healthcare sector, contributing to a small weekly decline in European stocks. The FTSE 100 index saw gains held back by GSK’s performance, although Burberry managed to recover, as noted by Investing.com.

Conclusion

GSK PLC is currently navigating a challenging period marked by regulatory setbacks and analyst downgrades. The company’s efforts to secure approval for its Blenrep combination therapy have been hindered by safety concerns, impacting its stock performance and market perception. As GSK addresses these challenges, investors and stakeholders will be closely monitoring the company’s next steps in the pharmaceutical landscape.