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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

Thursday, March 25, 2010

GlaxoSmithKline: The Unluckiest Pharma Company in the World

GlaxoSmithKline (GSK), the world’s second-largest drug maker, just can’t seem to catch a break.

It appears the Swiss pharma giant can do nothing right these days. First, there was Advair, the asthma drug that worsened the condition with prolonged use, then there was Avandia, the diabetes drug which has been shown to cause heart attacks. Now, there is GSK’s vaccine for the diarrhea-inducing virus Rotarix. The vaccine was found to contain traces of the supposedly innocuous pig disease called porcine circovirus.

Several governments have advised their doctors to avoid treating patients with the drug until the risk of the unintended ingredients can be determined. Switzerland is the most recent country to issue a cease and desist order. The company spokespeople insist this is only a temporary precaution, and that those who have already been inoculated with the drug have nothing to fear. Stay tuned for further mishaps from GlaxoSmithKline, we predict their heavy-hitter, Tums, will be shown to cause indigestion and heartburn.

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