Key TakeawaysBerenberg elevated GSK to “buy” from “hold” and increased the price objective to £22 from £20Shares advanced 0.4% to £18.62 during early London market hoursThe pharmaceutical company trades at a 23% valuation discount compared to European drugmaker peersGSK secured rights to a trispecific T cell-engager from Chimagen Biosciences in a transaction worth as much as $750 millionThe acquired Chimagen asset targets multiple myeloma and is projected to begin Phase 1 clinical trials in 2027Shares of GSK increased 0.4% to £18.62 during early trading hours in London on Tuesday following Berenberg’s decision to raise the pharmaceutical manufacturer from “hold” to “buy” while lifting the price objective to £22 from £20.GSK plc, GSKThe rating enhancement arrives as Berenberg highlighted a more robust late-stage development portfolio and increased business development activity as justification that the existing valuation gap is unjustified.The company trades at 9.6 times projected 2027 adjusted earnings. This represents a 23% markdown versus European pharmaceutical competitors, which command a 12.4 times multiple. Berenberg contends this disparity has grown excessive.The investment firm observed that 10 of GSK’s 11 innovative Phase 3 programs were obtained through external partnerships. Six of these advanced-stage candidates are projected to deliver peak yearly revenues of at least £2 billion each.Berenberg projects GSK revenues approaching £39 billion by 2031. This estimate exceeds the Street consensus of approximately £36 billion and approaches GSK’s internal target of exceeding £40 billion.Upcoming Pipeline MilestonesRecently introduced therapies Exdensur and Blenrep are anticipated to drive revenue expansion. Berenberg identifies additional growth opportunities from bepirovirsen, Nuvalent’s pulmonary cancer programs, and GSK’s oncology antibody-drug conjugates developed with Hansoh.The investment firm highlighted two imminent regulatory milestones. A U.S. regulatory determination on bepirovirsen for hepatitis B treatment is anticipated by October 26, while a decision on neladalkib for second-line ALK-positive lung cancer is scheduled for November 27.Phase 3 results and proof-of-concept information are expected within the coming 12 months spanning small-cell lung cancer, HIV, asthma, food allergy, and bronchiectasis treatment programs.GSK’s efficiency initiative aims for £1.9 billion in yearly savings by 2029. Berenberg indicated this should safeguard research investment and maintain margin stability despite anticipated erosion of high-margin oral HIV therapies beginning in 2028.Patent expiration on dolutegravir represents a recognized challenge. Berenberg’s above-consensus projections indicate confidence that pipeline candidates and operational discipline can offset this pressure.GSK Expands Multiple Myeloma Portfolio Through Chimagen TransactionIn a separate announcement, GSK revealed it has entered an agreement to obtain a trispecific T cell-engager from Chimagen Biosciences. The arrangement includes complete worldwide rights and represents a total potential consideration of up to $750 million, encompassing development and commercialization milestone payments.The T cell-engager concurrently engages T cells while targeting two tumor-associated antigens. The candidate is anticipated to commence Phase 1 clinical studies in 2027.Multiple myeloma ranks as the third most prevalent blood cancer worldwide, with approximately 180,000 new diagnoses reported annually. The condition is manageable but remains incurable with current treatment options.Hesham Abdullah, GSK’s Global Head of Oncology R&D, stated the transaction “advances GSK’s leadership goals in blood cancer” and introduces a new prospective treatment alternative for patients.The Chimagen transaction expands upon an established collaboration between both organizations. GSK previously committed to acquiring CMG1A46, a dual CD19 and CD20-targeted T cell-engager presently undergoing Phase 1 evaluation for B-cell malignancies.The post GSK (GSK) Stock Gains Following Berenberg Analyst Upgrade and $750M Chimagen Acquisition appeared first on Blockonomi.