The UK-based pharmaceutical giant GlaxoSmithKline (GSK) has issued a statement that some of its executive employees have acted “outside of Chinese law.” The company gave the announcement after a meeting with Chinese police officers who were investigating accusations of corruption… …read more
Tag Archives: GSK
China shuts travel agency in GSK bribery case
China has shut down a travel agency which served as a conduit for bribes allegedly given by staff of British drug firm GlaxoSmithKline (GSK), the government and state media said. …read more
Source: FULL ARTICLE at Phys.org
China bars GSK executive from leaving amid bribery probe
Chinese authorities have barred the British finance director of GlaxoSmithKline (GSK) in China from leaving the country, the company said Thursday as it faces a bribery probe.
But the Shanghai-based executive, Steve Nechelput, has not been detained or arrested, GSK said.
“We have been aware of travel restrictions for Steve since the end of June. His travel is unrestricted within China,” it said in a statement to AFP.
A spokesman for the British Consulate in Shanghai said it was providing him assistance, but declined to go into details.
Chinese authorities allege GSK staff bribed government officials, pharmaceutical industry groups, hospitals and doctors to promote sales.
Police have already detained four top executives of GSK, all Chinese nationals, a ministry of public security official said earlier this week.
Media reports say more than 20 people have been detained in the case, including pharmaceutical and travel industry personnel.
GSK employees gave the bribes directly and through travel agencies and project sponsorship, the public security ministry said last week.
GSK executives also took kickbacks from travel agencies in return for organising conferences, some of which did not exist, according to an interview with one of the detained executives aired on state television.
Chinese state media on Wednesday blasted GSK for being “dirty and devious”, accused the firm of inflating its prices and said the case provided a lesson for others.
GSK has said it “shares the desire of the Chinese authorities to root out corruption” and would “cooperate fully” with the investigation.
“These allegations are shameful and we regret this has occurred,” it said in a statement earlier this week.
Source: FULL ARTICLE at Fox World News
Will Payments To Scientists For New Drugs Improve GSK's R&D Productivity?
By John LaMattina, Contributor It’s pretty hard for a former pharma R&D scientist to ignore the following article from The Sunday Times: “Banker bonuses for Glaxo boffins”. Actually, I had to look up the meaning of “boffin” (British slang for a scientist or a technical expert). But the gist of the article is that GSK is planning to pay banker-style bonuses to R&D scientists if compounds that they discovered reach the market. These awards won’t be trivial. According to the author, Matthew Goodwin, the GSK payouts could range from $7.5 – $15 million. …read more
Source: FULL ARTICLE at Forbes Latest
'Dirty' GSK inflated China prices with bribes: paper
A Chinese state newspaper on Wednesday called GlaxoSmithKline, which is under investigation for bribery in China, “dirty and devious”, accusing the British drug firm of inflating its prices.
Chinese authorities say GSK staff bribed government officials, pharmaceutical industry groups, hospitals and doctors to promote sales.
An editorial in the China Daily newspaper said the company passed on the cost of hundreds of millions of dollars in bribes directly to consumers.
“The bribery case involving GlaxoSmithKline… points to another conduit that pushes up the prices of medicine,” the editorial said.
“The money used to lubricate drug sales and prescriptions contributes 20 to 30 percent to the prices patients pay for their medicine.”
The Chinese government, in another investigation, is currently checking 60 pharmaceutical companies over their prices, a move analysts say is aimed at cutting healthcare costs for ordinary Chinese.
Foreign baby formula companies have also been targeted recently.
GSK gave the bribes directly a nd through travel agencies and project sponsorship, the ministry of public security said last week.
Police have detained more than 20 people, including four top executives of GSK and pharmaceutical and travel industry officials.
“It is a shame that such a well-known transnational pharmaceutical firm has promoted its sales in such a dirty and devious way,” said the China Daily, a state-run English-language paper.
“These bad apples should receive the punishment they deserve for what they have done,” it said.
Chinese state television on Tuesday aired an interview with one of the four detained GSK executives, vice president and operations manager Liang Hong, who gave details of how the bribes were made.
“In terms of getting (drugs) into hospitals, there are tendering offices throughout the country, heads and directors of pharmacies in different hospitals that we need to contact,” he said.
GSK said Monday it was “deeply concerned and disappointed by these serious allegations of fraudulent behaviour and ethical misconduct by certain individuals at the company and third-party agencies”.
An editorial in another state-backed newspaper, the Global Times, said the GSK case provided a “lesson” for those engaged in bribery.
“It’s notable that some foreign-invested companies have engaged in very serious, brazen bribery in China,” said the newspaper, known for its nationalistic editorial stance.
“If China strengthens its crackdown on both bribers and corrupt officials at the same time, the effects of the anti-corruption campaign will be doubled.”
China’s new leadership, led by President Xi Jinping, has vowed to tackle corruption but analysts say such campaigns are often short-lived and rooting out graft will require fundamental reforms.
Source: FULL ARTICLE at Fox World News
XenoPort Provides Update on Its Introduction of Horizant
By Business Wirevia The Motley Fool
Filed under: Investing
XenoPort Provides Update on Its Introduction of Horizant
SANTA CLARA, Calif.–(BUSINESS WIRE)– XenoPort, Inc. (NAS: XNPT) reported today that GlaxoSmithKline (GSK), who holds commercialization rights to Horizant® (gabapentin enacarbil) Extended-Release Tablets in the United States during a transition period ending on April 30, 2013, has experienced manufacturing delays that have resulted in a stockout of Horizant. GSK continues to have sole responsibility for the manufacture and supply of Horizant during this transition period and is working to resolve the manufacturing issues with its contract manufacturer. Although the timing is not yet certain, XenoPort is hopeful that new inventory of Horizant will be available in pharmacies in June.
In accordance with the November 8, 2012 Termination and Transition Agreement between XenoPort and Glaxo Group Limited, XenoPort will assume responsibilities for further development, manufacturing and commercialization of Horizant in the United States on May 1, 2013. As part of this agreement, GSK agreed to continue to supply Horizant to XenoPort until October 30, 2013. XenoPort is in the process of completing preparations to assume all other responsibilities for Horizant, including the deployment of its contract sales force and other commercialization efforts to fully support Horizant product sales in the United States. However, as a result of the manufacturing delays, XenoPort anticipates that its full commercial introduction of Horizant will not commence until a sufficient supply of Horizant is available.
Ronald W. Barrett, Ph.D., chief executive officer of XenoPort, stated, “We are obviously disappointed by this news, particularly since we have received inquiries from patients who have been unable to get their Horizant prescriptions filled. We are working with GSK and its contract manufacturer to expedite the next Horizant manufacturing campaign, and we are also advancing our plans to work directly with the contract manufacturer as soon as possible.”
Dr. Barrett continued, “We are evaluating the impact, if any, this will have on our financial expectations for Horizant. We believe we will gain clarity on this as we address backorders, fill the supply chain and work to ensure an uninterrupted supply of Horizant in the future.”
About XenoPort
XenoPort is a biopharmaceutical company focused on developing and commercializing a portfolio of internally discovered product candidates for the potential treatment of neurological disorders. Horizant is our first approved product in the United States. GlaxoSmithKline holds commercialization rights for Horizant in the United States during a transition period ending on April 30, 2013, following which XenoPort
From: http://www.dailyfinance.com/2013/04/12/xenoport-provides-update-on-its-introduction-of-ho/
GlaxoSmithKline Is Offering $1 Million To Jump-Start ‘Electroceuticals’ Research
By The Huffington Post News Editors
By Ben Hirschler
LONDON, April 10 (Reuters) – GlaxoSmithKline, Britain’s biggest drugmaker, is placing a small but important bet on a new way of treating diseases by targeting electrical signals in the body.
The company said on Wednesday it would offer a $1 million prize to stimulate innovation in the field, as well as funding up to 40 researchers working in external laboratories.
The initiative is a long-term gamble on the promise of a new kind of medicine, using electrical impulses rather than the chemicals or biological molecules found in today’s drugs.
GSK believes it is ahead of rivals in the emerging area and, given the early-stage nature of the work, the drugmaker aims to play a coordinating role in bringing researchers together.
The new field of “electroceuticals” has also grabbed the attention of a number of academic research groups which are already mapping neural circuits in animals and humans, and working on potential interventions for testing in clinical trials.
“At GlaxoSmithKline and in academia, we are confident that this field will deliver real medicines, and we are mobilising resources for this journey,” GSK head of bioelectronics research Kristoffer Famm and colleagues wrote in the journal Nature.
Academic centres involved in the research effort include the Massachusetts Institute of Technology, the University of Pennsylvania and the Feinstein Institute of Medical Research.
The idea is to use the electrical impulses that form the “language” of the body’s nervous system to address a range of diseases, from high blood pressure to breathing problems and, eventually, brain disorders.
Moncef Slaoui, chairman of GSK research and development, said bioelectronics was set to be the next big wave in medicine, comparable to the rise in biological therapies over the past 15 years triggered by advances in biotechnology.
“This is our vision for the next 10 to 20 years,” he told Reuters. “In the future, a big chunk of R&D will be doing bioelectronics.”
Source: FULL ARTICLE at Huffington Post
The Stock Picker's Guide to GlaxoSmithKline
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — Successful investors use a disciplined approach to picking stocks, and checklists can be a great way to make sure you’ve covered all the bases.
In this series I’m subjecting companies to scrutiny under five headings: prospects, performance, management, safety and valuation. How does GlaxoSmithKline measure up?
1. Prospects
The pharmaceutical industry is riding a demographic wave of aging populations in developed countries and increasing wealth in developing ones. However, many companies are suffering competition from generic manufacturers as patents expire.
GSK is one of the world’s biggest drug makers, giving it the firepower to spend heavily on R&D, and it has a promising pipeline. Vaccines and consumer health care products (30% of sales) provide stability and the latter helps GSK‘s big push into emerging markets.
2. Performance
Turnover has been gently declining in recent years, but this trend is expected to reverse as new drugs come on stream from the end of this year. Operating profit has been variable, but GSK earns gross margins above 20%.
2.5 billion pounds per year has been stripped out of costs in recent restructurings, and the company expects to strip another 1 billion pounds by 2016.
3. Management
Sir Andrew Witty started with the firm as a graduate trainee and has been CEO since 2008. He has steered the strategy of diversification, penetration of emerging markets, and cost-cutting. He also dealt effectively and decisively with past regulatory abuses in the U.S.
The chairman is City grandee Sir Christopher Gent, who took Vodafone from a start-up to FTSE 100 membership. Together with a former Goldman Sachs M&A banker as finance director, the board is a formidable deal-making machine, but perhaps not excessively risk-averse.
Directors have substantial shareholdings.
4. Safety
GSK‘s balance sheet is its Achilles’ heel. Net gearing is 240%. However, the debt is mostly long term, with about half having a maturity over five years. Reassuringly, interest cover is a healthy nine times.
15 billion pounds of GSK‘s 6.7 billion pound equity is represented by intangibles, so tangible net assets are negative. But nearly 10 billion pounds of the intangibles is patents and brands, which have real monetary value.
Cash conversion is good, with 90% of GSK‘s profit before tax flowing through as cash. Fixed costs of interest, dividends, capex and R&D still leave surplus for share buybacks.
5. Valuation
A historic price-to-earnings ratio of 16.8 looks expensive, but it drops to 13.2 on a prospective basis. The stock is yielding 4.8%, rising to 5.1% next year, and the fat yield in a defensive sector is the reason many investors hold the stock.
GSK has a superlative track record of rising dividends over 20 years, though sometimes that’s meant dividend cover has dropped to 1.25 times.
Conclusion
Despite its over-geared balance sheet and the industry’s patent cliff, GSK is a relatively safe play with a juicy yield to reward investors, and promising prospects.
One of GSK‘s biggest shareholders is Invesco Perpetual‘s star fund manager Neil Woodford. Nearly a quarter of his 22 billion pound funds are invested in just three companies in the
Source: FULL ARTICLE at DailyFinance
Anacor Pharmaceuticals Receives Significant Investment to Support Neglected Disease Research
By Business Wirevia The Motley Fool
Filed under: Investing
Anacor Pharmaceuticals Receives Significant Investment to Support Neglected Disease Research
PALO ALTO, Calif.–(BUSINESS WIRE)– Anacor Pharmaceuticals (NAS: ANAC) today announced that it has signed a research agreement with the Bill & Melinda Gates Foundation (the Gates Foundation) to discover drug candidates intended to treat two filarial worm diseases (onchocerciasis, or river blindness, and lymphatic filariasis, commonly known as elephantiasis) and tuberculosis (TB). Additionally, Anacor will create an expanded library of boron compounds to screen for additional potential drug candidates to treat neglected diseases and will provide access to the expanded library compounds for neglected disease research to the Gates Foundation, and others, including academic, governmental and other non-profit institutions or equivalent entities. Under the agreement, Gates Foundation will pay Anacor $17.7 million as well as invest $5 million in Anacor common stock.
“We are excited to continue our research in neglected diseases through this landmark research agreement with the Gates Foundation, which is known for its dedication to solving global health issues,” said David Perry, Anacor’s Chief Executive Officer. “Anacor is committed to applying our chemistry to find new treatments for neglected diseases, and it is with the support of partners like the Gates Foundation that we can fulfill that commitment.”
“Anacor’s boron chemistry platform can help to discover and develop drug candidates that address significant unmet needs for patients suffering from neglected diseases,” said Trevor Mundel, President of Global Health, Bill & Melinda Gates Foundation. “We are pleased to fund this research collaboration as well as invest in Anacor to help improve the lives of the millions of people in developing countries who are impacted by these diseases.”
About Anacor Pharmaceuticals
Anacor is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds — tavaborole, a topical antifungal for the treatment of onychomycosis, and AN2728, a topical anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. In addition to its two lead programs, Anacor has discovered three other wholly-owned clinical product candidates — AN2718 and AN2898, which are backup compounds to tavaborole and AN2728, respectively, and AN3365 (formerly known as GSK2251052, or GSK ‘052), a systemic antibiotic for the treatment of infections caused by Gram-negative bacteria, which previously was licensed to GlaxoSmithKline LLC, or GSK. GSK will be returning all rights to the compound to us and …read more
Source: FULL ARTICLE at DailyFinance
GlaxoSmithKline Launches Phase 3 Trial for Benlysta
By Dan Carroll, The Motley Fool
Filed under: Investing
Pharmaceutical maker GlaxoSmithKline will begin a phase 3 clinical trial to judge lupus medication Benlysta’s effectiveness in treating patients with ANCA-positive vasculitis. The trial, which GlaxoSmithKline announced in a recent press release, will also evaluate Benlysta’s safety profile; the drug has not been approved to treat vasculitis by any regulatory body, yet.
Benlysta was first approved by the FDA to treat adult patients with a specific type of lupus in 2011, and later that year added an approval from the European Commission. The drug recorded just over $100 million in sales last year, an underwhelming amount, considering the $3 billion GSK spent in 2012 purchasing its partner in developing Benlysta, Human Genome Sciences.
The company hopes success in treating vasculitis can fuel sales. The disease, which leads to the immune system’s attacking of blood vessels, and can result in organ damage, affects between 102 to 284 people per million in the U.S., according to GSK‘s release.
The article GlaxoSmithKline Launches Phase 3 Trial for Benlysta originally appeared on Fool.com.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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Read | <a target=_blank href="http://www.dailyfinance.com/2013/04/04/glaxosmithkline-launches-phase-3-trial-for-benlyst/" rel="bookmark" title="Permanent link …read more
Source: FULL ARTICLE at DailyFinance
AstraZeneca: The High-Yield Biotech Play
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — Two scientists in white lab coats stare into a microscope. The picture on the front of AstraZeneca‘s website sums up the company’s new strategy perfectly.
“We see no case for diversification” was the unequivocal message from CEO Pascal Soriot last week, in sharp contrast to rival GlaxoSmithKline. Instead, Astra plans to remain focused on being a scientific R&D-led developer and marketer of prescription drugs.
Patent cliff
That leads to an obvious question: how will Astra get over its patent cliff? Revenues dropped by 20% last year. Soriot’s remedy is:
- Better marketing of existing patented drugs, such as heart-attack therapy Brilinta, getting more doctors to prescribe it. The company is also targeting sales growth in emerging markets.
- Streamlined and focused research. Astra will concentrate on just three therapeutic areas, management has been re-vamped and the R&D function is relocating around three bioscience clusters.
- Slashing administrative costs. More than 5,000 jobs will go by 2016, with a $2.3 billion restructuring charge expected to yield annual savings of $800 million.
Soriot aims to beat the current market consensus forecast of $21.5 billion of sales in 2018, equaling 2011’s outturn. That’s hardly a stretch target.
Is the dividend safe?
Many investors hold Astra for its 6% yield. The good news is that the board has adopted a policy of maintaining or growing the dividend while new drugs come on-market. It’s targeting a cover of two times core earnings over the investment cycle, giving it a lot of wriggle room.
The plan is to spend half of free cash flow on R&D and most of the rest on dividends, with any cash remaining used for bolt-on acquisitions or share repurchases. That’s a great plan if there’s enough cash, but it depends on the boffins getting new drugs authorized.
Astra’s strategy is significantly higher risk than GSK‘s, whose over-the-counter products like Lucozade don’t need years of R&D and testing. It will take a couple of years to find out if it’s working, and if it isn’t then the progressive dividend policy will be out the window.
Hedging bets
But if Soriot pulls off the new strategy, investors will be rewarded with a re-rating of the shares. In contrast, GSK‘s diversification makes it a safer but more boring play.
Which to choose? It could make sense to hedge your bets with some money in each. One very successful investor who’s done just that is Invesco Perpetual‘s star fund manager Neil Woodford. Nearly a quarter of his 22 billion pound funds are invested in just three companies in the pharmaceutical sector: Astra, GSK and one other.
Woodford has an unrivaled record for stock-picking. His high income fund is “the best performing of any fund investing in the UK since it launched” according to Hargreaves Lansdown. It has grown at 12.6% a year since 1988.
You can learn more about how Woodford selects stocks, and the identity of his third pharmaceutical investment, in a newly updated report from the Motley Fool: “Eight Shares Held By Britain’s Super-Investor.” You can download it …read more
Source: FULL ARTICLE at DailyFinance
Anacor Pharmaceuticals to Hold Conference Call Tomorrow, March 21, 2013 at 8am ET / 5am PT to Discus
By Business Wirevia The Motley Fool
Filed under: Investing
Anacor Pharmaceuticals to Hold Conference Call Tomorrow, March 21, 2013 at 8am ET / 5am PT to Discuss Preliminary Results From the Phase 2 Dose-Ranging Study of AN2728 in the Treatment of Adolescents With Atopic Dermatitis
PALO ALTO, Calif.–(BUSINESS WIRE)– Anacor Pharmaceuticals (NAS: ANAC) will release preliminary results from the Phase 2 dose-ranging study of AN2728 in the treatment of adolescents with atopic dermatitis tomorrow, March 21, 2013 at approximately 7:00 a.m. ET. The announcement will be followed by a conference call at 8:00 a.m. ET to discuss the results.
The call can be accessed by dialing (877) 291-1367 (domestic) and (914) 495-8534 (international) five minutes prior to the start of the call. The call will also be webcast live and can be accessed on the Events and Presentations page, under Investors, on the company’s website at www.anacor.com and will be available for three months following the call.
About Anacor Pharmaceuticals
Anacor is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds — tavaborole, an antifungal for the treatment of onychomycosis, and AN2728, an anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. In addition to its two lead programs, Anacor has discovered three other wholly-owned clinical product candidates — AN2718 and AN2898, which are backup compounds to tavaborole and AN2728, respectively, and AN3365 (formerly referred to as GSK2251052, or GSK ‘052), an antibiotic for the treatment of infections caused by Gram-negative bacteria, which previously was licensed to GlaxoSmithKline LLC, or GSK. GSK has returned all rights to the compound to us and we are considering our options for further development, if any, of this compound. We have also discovered three other compounds that we have out-licensed for further development — two are licensed to Eli Lilly and Company for the treatment of animal health indications and the third compound, AN5568, also referred to as SCYX-7158, is licensed to Drugs for Neglected Diseases initiative, or DNDi, for human African trypanosomiasis (HAT, or sleeping sickness). We also have a pipeline of other internally discovered topical and systemic boron-based compounds in development. For more information, visit http://www.anacor.com.
Anacor …read more
Source: FULL ARTICLE at DailyFinance
XenoPort Reports Fourth Quarter and Year-End 2012 Financial Results
By Business Wirevia The Motley Fool
Filed under: Investing
XenoPort Reports Fourth Quarter and Year-End 2012 Financial Results
SANTA CLARA, Calif.–(BUSINESS WIRE)– XenoPort, Inc. (NAS: XNPT) announced today its financial results for the fourth quarter and year ended December 31, 2012. Revenues for the quarter were $0.5 million, compared to $5.4 million for the same period in 2011. Net income for the fourth quarter was $3.0 million, which resulted from a non-cash gain on XenoPort’s litigation settlement with Glaxo Group Limited (GSK), compared to a net loss of $16.9 million for the same period in 2011. At December 31, 2012, XenoPort had cash and cash equivalents and short-term investments of $139.0 million.
XenoPort Business Updates
Since the beginning of the fourth quarter of 2012:
- XenoPort and GSK announced that they had terminated their collaboration agreement concerning Horizant® (gabapentin enacarbil) Extended-Release Tablets under which GSK held commercialization rights and certain development rights in the United States. The termination and transition agreement also released all claims and resolved all pending litigation between the parties. During a transition period that will end on April 30, 2013, GSK will continue to exclusively commercialize, promote, manufacture and distribute Horizant in the United States.Following the transition period, XenoPort will assume all responsibilities for the further development, manufacturing and commercialization of Horizant in the United States.
- As part of the termination and settlement, GSK purchased $40.0 million of common stock of XenoPort, or 4,031,212 shares at an average price of $9.923 per share. Such shares were purchased in two tranches at a 12.5% premium to the average of the closing price of XenoPort common stock during a ten-trading-day period prior to each tranche.
- XenoPort completed enrollment in its Phase 3 pivotal trial of arbaclofen placarbil (AP) as a potential treatment for spasticity in patients with multiple sclerosis (MS).
- XenoPort announced favorable preliminary results from a Phase 1 clinical trial in healthy adults designed to assess the pharmacokinetics (PK), safety and tolerability of single doses of four different oral formulations of XP23829, a novel fumaric acid ester compound that is a prodrug of monomethyl fumarate (MMF). The trial demonstrated that administration of XP23829 resulted in the expected levels of MMF in the blood. XP23829 was generally well-tolerated in the trial.
- XenoPort initiated a Phase 1, multiple ascending …read more
Source: FULL ARTICLE at DailyFinance
These Five Income Stocks Will Gain From Sterling Weakness
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — So far this year, the pound has fallen more than 7% against the dollar, and it’s now trading at its lowest level since July 2010.
It looks likely to get worse before it gets better, with fears of a triple-dip recession, the loss of the AAA rating, fudged coalition politics, Mervyn King voting for more QE, and an even more inflation-tolerant Bank of England Governor waiting in the wings.
Dividends
With 70% of FTSE 100 company earnings coming from overseas, a weak pound can be a boost for the index. It should also be good news for dividends.
Brokers Shore Capital estimate that dividend growth in the FTSE 350 could double if sterling continues to fall against the dollar. Some of the big beneficiaries are the miners, which I looked at last week. But they start from a low base yield.
So I’ve trawled the FTSE‘s top 20 highest-yield stocks to screen for those with substantial overseas earnings, especially U.S.-based. With the euro looking at least as vulnerable as the pound, I’ve screened out companies with high European earnings.
These are the five high-income stocks, all with prospective yields of more than 4.5%, which should benefit most from sterling’s woes:
1. BAE Systems
The U.S. is by far the most important market for BAE Systems , accounting for nearly half its revenues. The U.K. contributes a fifth, and my guess is that much of BAE‘s other revenues are dollar denominated.
The imminent impact of sequestration is a threat to BAE‘s U.S. sales, but, ultimately, I don’t believe the U.S. will allow its national defense to be compromised. So I see BAE as a good long-term buy, with a prospective yield of 5.8%.
2. GlaxoSmithKline
GlaxoSmithKline‘s response to the patent cliff — moving into over-the-counter medicines and emerging markets — shows up in its revenue split. Just 6% of sales are in the U.K., with the U.S. contributing a third of the total.
Pharmaceutical shares demonstrated their defensive mettle in the 2007/2008 crash, losing just 15% as the FTSE halved. With a broad spread of revenues, a growing emerging markets franchise, and a yield of 5.3%, GSK is all things to all men. Why wouldn’t you own it?
3. AstraZeneca
AstraZeneca gets nearly 40% of its revenues from the Americas, with a quarter each from the U.K. and continental Europe. At 6%, it has one of the FTSE‘s highest yields, with fears over the company’s patent cliff weighing on the shares. Already, it’s seeing declining revenues.
New CEO Pascal Soriot should update investors with his strategy this month. That seems aimed at repositioning Astra back to scientific innovation, with maybe some biotech acquisitions or joint ventures. It would be a markedly different strategy from rival GSK.
4. National Grid
Yielding 5.6%, National Grid is the monopoly owner of the country’s high-voltage network and high-pressure gas system. But nearly 60% of its revenues come from the U.S., where it’s the largest power producer in New York state and has large gas and electricity distribution …read more
Source: FULL ARTICLE at DailyFinance
GSK promises growth this year after 2012 shortfall
GlaxoSmithKline, Britain’s biggest drugmaker, renewed its promise to return to growth this year, after failing to deliver a hoped-for sales and margin recovery in 2012.
Source: FULL ARTICLE at Fox Business Headlines
Europe faces cost cuts as GSK promises return to growth
GlaxoSmithKline plans to cut costs in its struggling European drugs division and promised investors a return to growth this year, after failing to deliver a hoped-for sales and margin recovery in 2012. …read more
Source: FULL ARTICLE at Fox Business Headlines