PharmaGossip: FT.com - GSK weakened by fears of block on landmark drug

Saturday, November 13, 2010

FT.com - GSK weakened by fears of block on landmark drug

GlaxoSmithKline fell back on a volatile day for the FTSE 100 on concerns that US regulators may reject one of its most important new drugs.
The shares faded 0.5 per cent to £12.23 after the Food and Drug Administration said that Benlysta, GSK’s experimental lupus treatment, showed inconsistent results and “appeared to be associated with an increase in death...Including three suicides.” The FDA’s advisory panel will meet on Tuesday to decide whether the drug should be approved for sale.

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“We believe a positive panel outcome is now finely balanced,” said JPMorgan Cazenove. “While Benlysta contributes only 2 per cent of our [valuation], it represents an important new potential blockbuster product for GSK.”