Glaxo's asthma drug approved: The pharmaceutical giant has received a badly needed boost, reports Gail Counsell
Tuesday 09 March 1993
The drug, fluticasone propionate, is already available as a treatment for hay fever under the name Flixonase. But its extension to the pounds 2.5bn-a-year respiratory market is important for Glaxo, which badly needs to broaden its product base.
More than half of Glaxo's profits are currently dependent on one drug, Zantac, the anti-ulcer treatment, and the performance of some of its newer drugs has proved disappointing.
The news boosted Glaxo's share price, which went on a roller- coaster ride yesterday following weekend reports that America's Food and Drug Administration had criticised the marketing of Zantac. In heavy trading, its shares tumbled 28p but recovered to close down 8p at 652p.
Glaxo, under its chief executive, Ernest Mario, played down the reports, admitting that the FDA had written in January warning that in its view some of the promotional claims made for Zantac were not justified.
But Glaxo insisted that the 'safety and effectiveness' of Zantac had not been called into question, and pointed out that at most the FDA would require it to write to US physicians correcting certain of the claims it had made.
Analysts said the problem was commonly encountered by drug companies. 'It's a storm in a teacup,' Paul Woodhouse, an analyst with Smith New Court, said.
The Stock Exchange said that it would be looking as a matter of routine at the movement in the share price. The implication is that a statement should perhaps have been made by the company when the problem arose.
But Mr Woodhouse insisted that the issue had been well aired. 'This was raised and discussed with analysts following the interim results last month,' he said.
Flixotide is an improved version of an inhaled steroid, a type of drug increasingly used to treat asthma since it attacks the inflammation that causes the asthma. Conventional treatments such as Glaxo's best-selling Ventolin merely ease its symptoms. Flixotide will therefore be able to substitute for lost Ventolin sales. It is also held to be more powerful and to have fewer side-effects than other steroids on the market.
(Photograph and graph omitted)
- 1 Michelle Watt's father says TV presenter killed herself because she was in constant pain
- 2 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 3 'Help me I'm trapped in a factory' messages keep being found on bottles of vitamin water
- 4 North Korean defector flees to Finland 'with evidence of chemical testing on humans'
- 5 Greek debt crisis: The photograph that conveys the despair of Greece's elderly
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...