GlaxoSmithKline upgraded to "buy"

04/24/07 - Deutsche Bank

LONDON, April 24 (newratings.com) - Analysts at Deutsche Bank upgrade GlaxoSmithKline (GSK-GBX) from "hold" to "buy." The target price has been raised from 1,550p to 1,700p.

In a research note published this morning, the analysts mention that the company’s Coreg CR drug is unlikely to face generic competition until 2023 due to the grant of matter patent to the company and the potential filing of additional patents by the company. If GlaxoSmithKline receives the patent protection for carvedilol phosphate, the switch rate for the drug is expected to reach 65%, the analysts say. The sales of carvedilol phosphate are expected to reach £1.3 billion in 2012, as compared to the prior estimate of £159 million, Deutsche Bank adds.