GlaxoSmithKline PLC is the world's second-largest pharmaceutical company has report solid 3Q earnings with a 15 percent jump. <o:p></o:p>
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Key Highlights:<o:p></o:p>
Financials<o:p></o:p>
o Net profit increased 15% for the 3Q to 1.39 billion pounds ($2.61 billion) <o:p></o:p>
o Revenue rose 3 percent to 5.64 billion pounds ($10.6 billion)<o:p></o:p>
o GSK’s management raised their full-year EPS Growth guidance for the year at 15%, from 12%.<o:p></o:p>
o Plans for a 6 billion pound ($11.3 billion) share buyback program over three years, doubling its current annual repurchases<o:p></o:p>
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Why the stock is going down?<o:p></o:p>
The date it plans to file its cervical cancer vaccine Cervarix in the <st1:country -region w:st='on'><st1:place w:st='on'>United States</st1:place></st1:country> has been delayed until April 2007 which was supposed to be filed by the end of the year. Management said the delay is explained by the need of strong data for the regulator. They also discontinued the development of a compound to treat severe infections and put on hold clinical trials for the new diabetes drug, Redona.<o:p></o:p>
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Why the stock will go up?<o:p></o:p>
“FDA approves new indication for ARIXTRA (fondaparinux sodium) injection for prevention of venous thromboembolism in abdominal Surgery. "Since many patients undergoing abdominal surgery are at high risk of developing VTE, the FDA's approval of ARIXTRA for this new indication represents an important and exciting medical development," said Kevin Lokay, vice president of GlaxoSmithKline Oncology. "This approval provides these high risk patients, particularly cancer surgery patients, the benefit of VTE protection in a once-a-day anticoagulant."”<o:p></o:p>
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“Fondaparinux is given subcutaneously daily. Clinically, it is used for the prevention of deep vein thrombosis in patients who have had orthopedic surgery as well as for the treatment of deep vein thrombosis and pulmonary embolism.<o:p></o:p>
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One potential advantage of fondaparinux over LMWH or unfractionated heparin is that the risk for heparin-induced thrombocytopenia is substantially lower. Furthermore, there have been case reports of fondaparinux being used to anticoagulate patients with established HIT as it has no affinity to PF-4. However, its long half life precludes its use in patients with renal dysfunction. The elimination is done without chemical reactants by renal way.” –Source: Wikipedia<o:p></o:p>
$52.82 (12/13/06)
