Three of our main concerns for the long-term investment case at GlaxoSmithKline (GSK) (a. the arrival of generic competitors to Advair b. its cash position and c. its pipeline productivity) have been tempered somewhat in the last week.
First, US-generics drugs giant Mylan was blocked from launching its generic Advair for at least another month after the Food and Drug Administration found problems in its regulatory application. Then, Coca-Cola and Kraft Heinz touted potential bids for GSK’s drinks brand Horlicks. Analysts have suggested it could fetch $3bn (£2.28bn). And finally, the group’s HIV division announced successful results from a final phase clinical trial, giving GSK the potential to launch the first two-drug treatment for new HIV patients – a medicine that is expected to generate over $1bn in annual revenues at its peak.
