Inspired by Avandia's woes, UK stock analysts are playing a dirge for GlaxoSmithKline's earnings, which are due out next week. The company is expected to take a $205 million hit to profits because of free-falling Avandia sales. Yesterday, the U.S. Department of Veterans Affairs cut the drug loose from its formulary, and European drug regulators tightened Avandia labeling there to warn of the risk of heart problems.
Meanwhile, the FDA still is mulling its own label changes. In a new report to investors, Deutsche Bank today predicted that Glaxo could lose 90 percent of its pre-controversy Avandia sales if the American agency stiffens its warnings.
- check out the report from the Times of London
- read about the European relabeling at Interactive Investor