The U.S. Food and Drug Administration decided this week that GlaxoSmithKline’s diabetes drug Avandia shall remain on the market, but will carry more warnings on its label. Avandia recently was linked to increased heart and kidney problems in those who take the drug to manage their diabetes. Shares of GlaxoSmithKline had their biggest gain in two years after the FDA advisory panel decided not to withdraw Avandia from the market.
Glaxo Avandia FDA Adversity Fuels Doubts of Comeback

The news causes questions for GlaxoSmithKline: will the drug company’s stock market value ever recover to its value prior to the Avandia scandal? Pascale Boyer Barresi, an analyst at Bordier & Cie, says “Glaxo probably will receive a black-box warning and the sales will probably not recover to the previous level. [Avandia sales] will probably recover 10 to 15 percent, but the decline was so far that I think once doctors have changed their patients, they will not switch back.”
Related Links:
Legal View: Avandia

Watchdog Group to FDA: Avandia Should Be Removed From the Market
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Glaxo Shares Rise After U.S. Panel Backs Avandia for Diabetes
Steve Nissen Comparing Avandia to 9-11

Tags: Avandia, Drug Recall

This entry was posted on Tuesday, August 7th, 2007 at 8:18 pm and is filed under Avandia. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.