Glaxo Going Through Losses After Avandia’s Scandal

As a result of the EMA’s decision to withdraw Avandia off the markets, GlaxoSmithKline has been experiencing losses day after day. As the market analysts gained the information regarding the fact that Avandia, the chief product of the giant pharmaceutical Company, GlaxoSmithKline, would no longer be the best selling diabetes drug in the world, they saw the fall coming.

On Thursday, the health regulators in both US and Europe announced that the investigations showed that Avandia led to some cardiovascular complications, including heart failures. On Friday, after this announcement, the shares of Glaxo lost around 2% of its value, with the experts forecasting further losses. The restrictions forced on the marketing of Avandia in the US market, caused as much damage as that caused by the drug’s withdrawal from the European markets.

However, the most evident losses would be recorded in 2011. The analysts stated that in 2012 the US patent of Glaxo would expire, leaving the drug manufacturer stranded in the market, provided it was not renewed.

Ellen Strahlman, the Chief Medical Officer of Glaxo, made a statement saying that the main concern of the Company is the safety of the patients.

Strahlman said, "Our primary concern continues to be patients with Type 2 diabetes and we are making every effort to ensure that physicians in Europe and the U.S. have all the information they need to help them understand how these regulatory decisions affect them and their patients".