Analyst views GSK's buy of Tesaro, saying it may not guarantee a firm foothold in the oncology space
Following the news on Monday (December 3) that UK pharma major GlaxoSmithKline (LSE: GSK) has struck a deal to purchase USA-based Tesaro (Nasdaq: TSRO) for $5.1 billion, GlobalData pharma analyst Paul Jeng offers his view on the company’s prospects.
He says: ‘‘Although the acquisition of Tesaro bolsters GSK’s oncology program with Zejula (niraparib), an approved PARP inhibitor for treatment of ovarian cancer, GSK is taking a risk by entering a highly competitive market currently dominated by Merck & Co (NYSE: MRK) and AstraZeneca’s (LSE: AZN) Lynparza (olaparib).
"Given the absence of efficacy data to significantly distinguish Zejula from other PARP inhibitors, it is unclear whether GSK’s bet on Zejula will pay significant dividends unless clinical evidence justifies label expansion as first-line treatment for ovarian cancer," Mr Jeng opined.
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