GlaxoSmithKline launches Advair HFA in US

10/17/06 - newratings.com

LONDON, October 17 (newratings.com) - Pharmaceutical giant GlaxoSmithKline Plc (GSK-GBX) Tuesday announced the launch of a new formulation of its blockbuster asthma treatment Advair in the US.

Advair HFA Inhalation Aerosol is a new formulation that can be delivered using a metered-dose inhaler delivery device. The dry-powdered form of the drug, which is known as Advair Diskus and was launched in the US in 2001, would be sold alongside Advair HFA. Global sales of Advair exceeded $1.5 billion in the second quarter of 2006 and the drug generated sales of more than $5.6 billion last year. Advair HFA was developed and is marketed by GlaxoSmithKline.

Analysts at Jyske Bank downgraded GlaxoSmithKline from "buy" to "accumulate." The target price was set to ₤16.50. In a research note published on Tuesday morning, the analysts mentioned that the company is facing intensifying generic competition, which is likely to negatively impact its restructuring costs. The performance of GlaxoSmithKline’s Avadia diabetes drug is expected to be adversely affected by the new DDP4 inhibitors, the analysts said. Jyske Bank expressed its concern regarding the company’s H2 prospects.