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GlaxoSmithKline Declines After Studies Show Heart Risk in Diabetes Drug

From Benzinga (June 28, 2010)

Shares of GlaxoSmithKline (NYSE: GSK) declined Monday after two studies showed an increased heart risk in its diabetes drug Avandia. U.S. regulators are now considering whether to keep the pill on the market in light of evidence that shows Avandia increased the chances of heart attack by 28% to 39%.

The two separate studies, conducted by the U.S. government and the Cleveland Clinic in Ohio, are weighing on shares of GlaxoSmithKline this afternoon. The FDA, which approved Avandia 11 years ago, can consider whether to suggest a ban on future sales or encourage market use with a warning label. A panel meeting next month will "review all the available evidence and make the best possible decision," FDA Deputy Commissioner Joshua Sharfstein said.

Despite an initial decline in sales after news broke of potential side effects, Avandia still commanded $1.2 billion in revenue in 2009.

Posted: June 2010