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 Advair, the company faces only minor near-term patent losses.
Glaxo's pipeline is emerging with several new potential blockbusters. Rather than launching several drugs with slight enhancements, Glaxo's next generation of drugs addresses unmet medical needs. 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 inhaled 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 key vaccines Cervarix and Synflorix lost the first-mover advantage to Merck and Pfizer, respectively. Read more 

Management

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 

Profile

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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