GSK culls pipeline.

Investors Chronicle, March, 2007

Shares in GlaxoSmithKline (GSK) dipped after it axed 11 products from its mid-stage pipeline. The drug giant has dropped a thrombosis drug, a diabetes product and four cancer drugs. Andrew Baum, analyst at investment bank Morgan Stanley, says this will slice $1.3bn (GBP673m) off revenue from his 2013 forecasts. More positively, GSK believes that its bird 'flu vaccine could work against a number of different strains.

The pipeline reshuffle is disappointing, but to be expected in drug development. At 1,412p we stand by our buy advice (1,451p, 30 December 2005).