GSK Drops Chronic Cough Drug as Shares Fall 4.5%

GSK GSK, a British drugmaker, has stopped developing camlipixant after concluding that the experimental treatment for refractory chronic cough was unlikely to transform patient care. The decision followed mixed late-stage results, with a high dose reducing cough frequency in one study but failing to meet the same goal in another trial involving a different patient population. The setback sent GSK shares down as much as 4.5% on Friday and removed one of the company's limited late-stage clinical readouts expected this year.

The failed program could add pressure to Chief Executive Officer Luke Miels' effort to strengthen GSK's pipeline and lift annual sales to 40 billion, or $53.8 billion, by 2031. GSK had previously estimated that camlipixant could generate more than 2.5 billion in annual sales, although some analysts projected only about 430 million by 2031. That caution reflected the modest efficacy of a similar chronic-cough drug from Merck & Co., a pharmaceutical company, which failed to receive approval from the US Food and Drug Administration.

Analysts suggested the setback may be more damaging to GSK's credibility than to its financial outlook after the company spent $2 billion to acquire the medicine. Bloomberg Intelligence analyst John Murphy described the outcome as a credibility hit rather than a major financial setback, while Barclays analyst James Gordon said the results could raise questions about GSK's acquisition strategy. Jefferies analyst Michael Leuchten viewed the setback as manageable and said the investment case is becoming increasingly focused on GSK's oncology portfolio, where recent acquisitions and internal assets may provide larger and longer-lasting value-creation opportunities.