Glaxo share price down further still as Avandia prescriptions reach… ZERO

It’s not looking good for Glaxo as prescriptions for Avandia reach… a bit fat ZERO.

Glaxo Avandia Prescriptions Fall, Deutsche Bank Says –
writes Andrea Gerlin at Bloomberg May 29

Avandia’s share of new oral diabetes prescriptions fell to about zero from 10 percent in the two days after the May 21 report in the New England Journal of Medicine, Deutsche Bank analysts wrote in a note. Takeda Pharmaceutical Co.’s diabetes drug Actos’ share climbed to 22 percent from 10 percent, the analysts wrote, citing data from market research firm Impact Rx.

“This reaction is far worse than we had anticipated and suggests that there could be as much as 22 percent downside risk to GSK’s near-term earnings, suggesting that there is still further downside to GSK’s share price,” the analysts wrote.

The publication of the Cleveland Clinic study caused Glaxo shares to decline 9 percent last week, cutting $13.7 billion from the company’s market value. The stock fell 24 pence, or 1.8 percent, to 1,310 pence at 2:36 p.m. in London.

The New England Journal article said users of Avandia, the London-based drugmaker’s second-best-selling medicine, were 43 percent more likely to have a heart attack and had a 64 percent increase in the risk of death than those given other drugs.

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