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.
I keep hearing really bad stuff about this drug Avandia. Following your blog has left me a little depressed about the process the companies go through when introducing new drugs into the market. I am not sure this is governed correctly.
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