Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

Glaxo's next-generation respiratory drugs should help mitigate both branded and generic competition to the company's top drug, Advair.
Outside of the potential generic competition to respiratory Advair, the company faces only minor near-term patent losses.
Due to the complexity in creating generic respiratory drugs, a typical severe patent cliff will not likely occur for the company's top drug Advair. Read more 

Bears Say

Even though device patents may hold off generic Advair competition until 2016, these patents are weaker than composition-of-matter patents, which opens the door to generics in the near term, especially in Europe, where regulators seems more willing to approve generic respiratory drugs.
Pricing pressure from payers is hurting Glaxo's respiratory franchise as competition is increasing from products offering similar benefits as Glaxo's key drugs.
Glaxo's pipeline lacks late-stage drugs with major blockbuster potential. Read more 


Glaxo selected the president of its European pharmaceutical business, Andrew Witty, to succeed Jean-Pierre Garnier as CEO in May 2008. Witty's leadership in increasing sales in a cost-conscious European environment should be an asset in the U.S., where   Read more 


In the pharmaceutical industry, GlaxoSmithKline ranks as one of the largest companies by market capitalization. The company wields its might across multiple therapeutic   Read more 

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