Despite some pretty devastating news about their "golden drug" Avandia earlier this week, GSK is doing really well on other fronts. Their stock is holding steady at just under $40 a share (39.72) and they had a press release this morning that is really exciting for them.
They received word today that the European Commission has approved one of their drugs, Arixtra, for use in a new therapeutic indication. This drug is an anti coagulant that is now the only drug of its type approved for use in "the treatment of adults with acute symptomatic spontaneous superficial-vein thrombosis ofthe lower limbs without concomitant deep-vein thrombosis." It is the only drug approved for this treatment in its class. This approval is great news for GSK.
Wednesday, September 29, 2010
Monday, September 27, 2010
Bad News for GSK!
On Thursday the EMA (European Medicines Agency) and the FDA both released reports regarding the use of Avandia (the key product of Glaxo - it treats diabetes). The findings of these studies were bad news for GSK stockholders. Marketing of this medicine has been suspended in the European Union and the FDA is requiring some pretty strict new labeling standards in the US. Sales of this drug were already down 23% in the US in the last quarter and are anticipated to drop again. That having been said, immediate stock prices are holding at $40.29.
The GSK website has quite a bit of information as well as a video message from Dr. Ellen Strahlman, the Chief Medical Officer, regarding these studies.
The GSK website has quite a bit of information as well as a video message from Dr. Ellen Strahlman, the Chief Medical Officer, regarding these studies.
Monday, September 20, 2010
Mission Statement
Wow. I am not sure that GSK has a simple mission. They have a credo that is on their links (improving health and quality of life - do more, feel better, live longer") but the mission and strategy page reveals that they unveiled a 3 part strategy for profitability:
1. Grow a diversified global business
2. deliver more products of value
3.simplify the operating model
Not really a unifying mission statement.
Interestingly, their credo sounds pretty familiar... the mission statement at Ferrell Hospital, my employer: Dedicated to improving the health and quality of life for the people and communities we serve.
1. Grow a diversified global business
2. deliver more products of value
3.simplify the operating model
Not really a unifying mission statement.
Interestingly, their credo sounds pretty familiar... the mission statement at Ferrell Hospital, my employer: Dedicated to improving the health and quality of life for the people and communities we serve.
Neat article!!
Here is a neat article - "Avandia: A PR mess for Glaxo, but not a financial one"
http://money.cnn.com/2010/09/15/news/companies/avandia_GSK_generics.fortune/
Seems that the bad press isn't as damning as GSK worried it might be at first!
http://money.cnn.com/2010/09/15/news/companies/avandia_GSK_generics.fortune/
Seems that the bad press isn't as damning as GSK worried it might be at first!
Glaxo Smith Kline and Economic Conditions
All things considered, Glaxo Smith Kline is weathering the economic conditions really well. This could be largely due to the number of NEEDED items they produce (like chickenpox vaccines). Looking back at the stock performance (which I realize isn't a company's only indicator of success), they have been holding pretty steadily for a number of years. The five year high was in 2007 and was over $50. In early 2009, they had a decline to just under $30, but they have returned from that slump very quickly.
Interestingly enough, this company was in a slump - holding to under $10 a share until the late 1990s. Their "golden drug" Avandia, brought about this rapid increase after it was introduced to the market in 1999. Then in 2007 this drug's sales plummeted, just as GSK was showing their 5 year peak of stock success. This drop in sales was due to findings that the drug, while an effective treatment for diabetes blood sugar control, was possibly to blame for heart conditions in many of the patients in a trial. Interestingly, today they crossed that $40 mark I was wondering about yesterday!
Interestingly enough, this company was in a slump - holding to under $10 a share until the late 1990s. Their "golden drug" Avandia, brought about this rapid increase after it was introduced to the market in 1999. Then in 2007 this drug's sales plummeted, just as GSK was showing their 5 year peak of stock success. This drop in sales was due to findings that the drug, while an effective treatment for diabetes blood sugar control, was possibly to blame for heart conditions in many of the patients in a trial. Interestingly, today they crossed that $40 mark I was wondering about yesterday!
Sunday, September 19, 2010
Official Lab services provider
As I was perusing the Glaxo Smith Kline website earlier today, I saw that they were the official provider of laboratory services for the 2012 London Olympics. I was a little confused by why there would need to be an official lab for the Olympics but then I looked at the article and it made sense: drug screening!
I was previously in human resources where I work (we've had a structural change and I am in Administrative Services) so I have had some experience in writing contracts to be the lab services provider for drug screening for local coal mines and I imagine this is a much bigger contract than many realize!
I was previously in human resources where I work (we've had a structural change and I am in Administrative Services) so I have had some experience in writing contracts to be the lab services provider for drug screening for local coal mines and I imagine this is a much bigger contract than many realize!
Wednesday, September 8, 2010
CFO Succession Plan Announced!!
GSK announced earlier today that their CFO, Julian Heslop, will be retiring in 2011. He will be replaced by Simon Dingemans. Mr. Heslop has only been with the company since 2005, but has been an accountant since the 1970s. It will be interesting to see if March 2011, the anticipated date for the changes, brings about any change for the accounting strategy of the company.
Glaxo Smith Kline Dealing with PR nightmare
http://www.gsk.com/media/pressreleases/2010/2010_pressrelease_10090.htm
This press release covers a Public Relations nightmare! The BBC program Panorama is running a special called "A Risk Worth Taking?" which outlines the reasons consumers should avoid the GSK med Avandia. This program also uses statements about the drug trial that was done outside of the GSK drug trial that make it seem like GSK is covering up evidence regarding Avandia's effects on heart disease!
This is a very well-written article and GSK is doing an excellent job of laying all of the facts out for consumers to make their own decisions in this case.
This press release covers a Public Relations nightmare! The BBC program Panorama is running a special called "A Risk Worth Taking?" which outlines the reasons consumers should avoid the GSK med Avandia. This program also uses statements about the drug trial that was done outside of the GSK drug trial that make it seem like GSK is covering up evidence regarding Avandia's effects on heart disease!
This is a very well-written article and GSK is doing an excellent job of laying all of the facts out for consumers to make their own decisions in this case.
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