The Financial Times is reporting that the recent Senate committee report on the dangers of Avandia is pushing down the value of Avandia manufacturer GlaxoSmithKline (GSK).
“The FTSE 100 broke a five-day winning streak yesterday with GlaxoSmithKline solely responsible for the fall. Shares in the drugmaker lost 2.6 per cent to £12.03½ after it faced fresh calls to withdraw the diabetes drug Avandia.
“GSK knew Avandia may increase the risk of heart attacks years before the evidence was made public, according to a US Senate report. The senators also claimed that GSK massaged test results and tried to intimidate doctors into retracting warnings about the potential side-effects.
“Sales of Avandia dropped sharply after safety concerns were first raised in 2007, meaning the drug is no longer a significant earner for GSK.
Financial Times report: http://www.ft.com/cms/s/0/9b81fe6e-201a-11df-81a2-00144feab49a.html