GSK to cut up to 350 R&D jobs across UK, US

Investing.com -- Wave Life Sciences Ltd (NASDAQ:WVE) stock rose 2.1% Monday after the clinical-stage biotechnology company announced it has regained full rights to WVE-006, its investigational RNA editing therapy for alpha-1 antitrypsin deficiency (AATD).

The company said it reached an agreement with GSK to take back control of the AATD program, as Wave is "well placed to efficiently advance" the therapy for this rare condition. Following this development, Wave plans to accelerate its registrational strategy for WVE-006 and engage with the FDA on a potential accelerated approval pathway, with regulatory feedback expected by mid-2026.

WVE-006 is designed as a first-in-class RNA editing therapeutic to correct the root cause of AATD, which affects approximately 200,000 individuals in the U.S. and Europe. The therapy aims to address both lung and liver manifestations of the disease, which currently has limited treatment options.

"We have been eager to accelerate our registrational strategy for WVE-006 since reporting our interim data that achieved key AATD treatment goals in recapitulating the healthier MZ phenotype, including dynamic AAT production of over 20 micromolar during an acute phase response," said Paul Bolno, President and CEO at Wave Life Sciences.

Data from the 400 mg multidose cohort of the ongoing RestorAATion-2 clinical trial are expected in the first quarter of 2026, with additional data from the 600 mg cohort anticipated later in 2026.

Despite this change, Wave’s research collaboration with GSK continues, with GSK selecting a fourth program to advance to development candidate in January 2026. The company maintains its cash runway projection into the third quarter of 2028.

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Investing.com -- Citi launched broad coverage of major European pharmaceutical companies with a mixed outlook, issuing Buy ratings on AstraZeneca and Novartis while taking a more cautious stance on GSK, Novo Nordisk and Sanofi. 

Analyst Graham Parry said valuations, pipeline depth and looming loss-of-exclusivity (LOE) events shape the bank’s relative preferences for 2026 and beyond.

Citi initiated GSK at Neutral with a 1,900p target, saying the company’s “growth, margins, dividend policy, balance sheet and pipeline have all improved,” helping drive a more than 45 percent share gain in 2025. 

But Parry warned that the mid-term looks difficult, noting a “27-30E EPS CAGR 0%” as GSK faces “significant LOEs in 26E-31E,” particularly across its £7 billion HIV franchise. He said key launches and late-stage data “may not be enough to rerate the stock further.”

Novo Nordisk also received a Neutral rating with a DKK400 target. Citi cited a “tough 26E outlook” driven by U.S. pricing reform, obesity-drug reimbursement hurdles and rising competition. 

Parry wrote that despite the scale of the obesity opportunity, “prices are eroding” and competitive pressures create uncertainty over long-term estimates.

For Sanofi, Citi initiated at Neutral with an EUR85 target, saying pipeline setbacks have “weakened the long-term growth outlook” and that 2026 is “catalyst-light.”

“Although Sanofi has time to reinforce its pipeline through both organic and inorganic means over the next 5 years, and its current c.10x 26E PE largely reflects the setbacks, we feel the market is unlikely reward the stock with a much higher multiple without tangible evidence of pipeline improvement,” wrote Parry.

By contrast, AstraZeneca was rated Buy with a 17,000p target. Citi called the company “best-in-class,” forecasting the fastest mid-term EPS growth in European pharma and highlighting a “by far the best R&D pipeline in the sector.” 

“2026 sees a huge catalyst path with PIII readouts worth >$30bn in peak sales ($17bn risk-adjusted) and launch of c$6bn peak-potential baxdrostat in resistant/uncontrolled hypertension,” Parry highlighted.

Novartis also earned a Buy rating, with Parry pointing to “EPS outperformance,” a strong catalyst path and “valuation upside.”

“Although it has outperformed European pharma by 15% and the market (Stoxx600) by 5% in 2025 we see scope for this to continue,” Parry stated, adding thathe expects “Novartis to continue EPS outperformance.”

Investing.com -- Citi has initiated coverage of the “Big 6” European pharmaceutical groups with a positive sector view, rating AstraZeneca (LON:AZN), Novartis AG (SIX:NOVN) and Roche (SIX:ROG) at Buy while assigning Neutral ratings to GSK (LON:GSK), Sanofi (EPA:SASY) and Novo Nordisk (CSE:NOVOb).

AstraZeneca and Novartis are the Wall Street bank’s top picks. 

Citi expects the industry to remain a growth sector, driven by innovation and an unusually full late-stage pipeline. It forecasts average earnings per share (EPS) growth of 7% in 2026 and an 8% compound rate through 2030, driven by new product launches that are largely offsetting patent expiries.

"Despite its increasing revenue base and pricing and access headwinds, demand for new innovative products that improve patient outcomes and address unmet medical needs continues," Citi analysts led by Graham Parry said in a note. "We see the sector continue to drive growth with new launches mostly able to offset loss of patent protection."

The sector’s combined late-stage pipeline carries $167 billion in risk-adjusted peak sales potential — well above the roughly $93 billion of revenue Citi models as lost to loss of exclusivity by 2034.

The analysts also flagged 2026 as a catalyst-heavy year, particularly for AstraZeneca and Novartis, with a large number of Phase III data readouts across major disease areas.

At the same time, policy risks have eased after most favored nation (MFN) pricing agreements with the U.S. administration late last year, which the analysts said have reduced tariff and drug pricing uncertainty for most companies.

Among the Buy-rated stocks, Citi views AstraZeneca as the strongest long-term growth story, supported by what analysts see as “ by far the best R&D pipeline in the sector,” alongside a heavy flow of late-stage trial results with more than $30 billion in unadjusted peak sales potential.

Novartis is described as a "serial earnings outperformer," with Citi expecting the company to beat consensus sales growth as both approved products and late-stage assets gain traction.

"We expect Novartis to achieve its 4-5% 25-30E sales guidance, beating consensus 3.5-4.0% and seeing our 30E forecasts 7-8% above consensus," the analysts said. 

Roche’s Buy rating is anchored in an improving pipeline, led by giredestrant in breast cancer and fenebrutinib in multiple sclerosis, as well as "8 new PIII starts with $23bn peak sales potential."

On the Neutral side, Citi said GSK’s operational improvement and new launches are being overshadowed by a significant loss of exclusivity in its HIV franchise later in the decade.

For Sanofi, analysts said the stock’s valuation already reflects a series of pipeline setbacks over the past year, while Novo Nordisk faces multiple near-term headwinds around pricing, access and competition, despite early strength in prescriptions for its oral Wegovy launch.

Investing.com - European stocks retreated Tuesday, adding to the previous session’s sharp losses as the concern of further economic hardship from new trade tariffs lingers.

The DAX index in Germany dropped 1.1%, the CAC 40 in France slipped 0.6% and the FTSE 100 in the U.K. fell 0.7%. 

Tariffs threat weigh on growth prospects

Regional indices slumped on Monday after U.S. President Donald Trump threatened escalating tariffs on several European allies unless the U.S. is allowed to purchase Greenland, an autonomous Danish territory.

This negative tone is set to continue Tuesday as U.S. markets resume trade, having been closed for a holiday on Monday, and are expected to move sharply lower.

Trump indicated late Monday that he will meet several officials to discuss the matter at the World Economic Forum in Davos, Switzerland, but he also reiterated his demands for Greenland, stating that “Greenland is imperative for National and World Security. There can be no going back.” 

European leaders have widely rejected Trump’s calls for Greenland, and were also seen preparing retaliatory measures if Trump proceeds with his tariffs–with a decision to be made at an emergency meeting of EU leaders on Thursday–increasing the prospect of a broader transatlantic trade dispute.

Citigroup on Tuesday downgraded European equities on the basis of uncertainty clouding the outlook for earnings.

Slowing U.K. wage growth points to rate cuts

The U.K. unemployment rate remained at an elevated rate in November while wage growth retreated, data showed Tuesday, suggesting further interest rate cuts by the Bank of England are likely as the new year progresses.

The jobless rate remained at 5.1% in the three months to November, the same level as the prior month, and the highest level since early 2021.

At the same time, pay growth across the whole economy, excluding bonuses, fell to an annual 4.5% rate in the three months to November, below the 4.6% seen the prior month.

The Bank of England cut its key interest rates by 25 basis points to 3.75% at its last decision in December, and next meets in early February.

German producer prices fell broadly in line with expectations in December, decreasing by 2.5% from a year earlier, the federal statistics office reported on Tuesday.

U.K. pharma sector in focus 

In the corporate sector, U.K. biopharma giant GSK (LON:GSK) announced it has entered a definitive agreement to acquire RAPT Therapeutics (NASDAQ:RAPT), a California-based clinical-stage biopharmaceutical company, for an estimated equity value of $2.2 billion.

Also of interest, AstraZeneca (LON:AZN) announced it would delist from Nasdaq and complete a direct listing of its ordinary shares and debt on the New York Stock Exchange, effective after market close on January 30.

Crude calms after volatile session

Oil prices traded higher on Tuesday, following a volatile session, after President Trump threatened to impose tariffs on several major European countries until a deal is reached to hand over Greenland to Washington.

Brent futures gained 1.6% to $64.99 a barrel and U.S. West Texas Intermediate crude futures fell 1.8% to $60.41 a barrel.

Beyond geopolitical tensions, the focus this week is squarely on a monthly report from the International Energy Agency, due on Wednesday.

The report will be watched for more cues on oil supplies, with the IEA having repeatedly warned of a brewing supply surplus in 2026. 

The IEA report comes just a week after a monthly report from the Organization of Petroleum Exporting Countries presented a positive outlook for demand in 2026 and 2027.