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GlaxoSmithKline (GSK) is the world's second largest pharmaceutical company, with global operations based in the U.K. and the U.S.
Although Glaxo has made significant progress with its late-stage pipeline, we are worried about the recent negative news surrounding the company-s second-largest-selling drug Avandia, as well as generic competition to several other products. Sales of Avandia have plummeted, but we think they're close to bottoming.
We think Glaxo possesses one of the stronger late-stage pipelines in large-cap pharma, but believe the shares will remain constrained until there's more visibility on the Avandia issue. Our price target is $43.
Jason Napodano, CFA contributed to this report.
Read the full analyst report on GSK
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