GSK PLC (LSE:GSK, NYSE:GSK)'s settlement with a California plaintiff over an alleged link between Zantac and cancer "clears 80%+ of the liability overhang", according to Jefferies.
However, the US investment bank said that a risk "persists" because there are still other Zantac lawsuits pending.
The out-of-court deal allows GSK to focus on commercialising Arexvy, a potentially best-in-class vaccine for respiratory syncytial virus (RSV). The company expects to launch Arexvy for older adults ahead of the winter season.
GSK is forecasting a $13 billion global market for RSV vaccines. Jefferies believes Arexvy could capture 30% of this market, which would generate peak sales of $4 billion.
The American bank repeated its 'hold' recommendation and 1,575p a share price target. Mid-afternoon, the stock was changing hands for 1,434p, up 0.6%.