GlaxoSmithKline; MARKET MOVER

GlaxoSmithKline could have done with a shot of one of the many elixirs it sells to millions of people around the globe. The world’s second-largest drugs company saw its shares shed more than 9 per cent after a medical journal article questioned the safety of one of its best-selling drugs.

Chief executive Jean-Pierre Garnier quickly shifted into damage- control mode to play down the findings published in the New England Journal of Medicine. The study, by Dr Steve Nissen at the Cleveland Clinic, found that the diabetes treatment Avandia increased heart attack risk by 43 per cent and cardiac-related deaths by 64 per cent. "There is clearly an overreaction to one statistical analysis," Mr Garnier was quoted as saying last week. "The company will be able to put this issue behind us."

The market was unconvinced by his pleas, however, as by the end of the week the US Food and Drug Administration (FDA) said that a review of research corroborated the journal article. To further confuse the issue, the regulator went on to point out that data from a larger study indicated no elevated danger.

Avandia is GSK’s second-best seller with [pound]1.6bn in annual sales after Advair, a treatment for asthma. The FDA will address the study’s findings at a forthcoming advisory meeting. Mr Garnier repeatedly insisted that the safety of the drug would be vindicated. He drew a parallel with concerns relating to AstraZeneca’s Crestor cholesterol treatment. AstraZeneca’s shares took a major hit on safety fears that were later proved to be unfounded.

(c) 2007 Independent on Sunday, The. Provided by ProQuest Information and Learning. All rights Reserved.