Continue reading GlaxoSmithKline Rises on FDA's Avandia Decision

GlaxoSmithKline Rises on FDA's Avandia Decision originally appeared on BloggingStocks on Thu, 15 Jul 2010 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: A Rally Fizzles (BP, CSCO, GSK, INTC, KBH, NOC, TM)

Closing Bell: A Rally Fizzles (BP, CSCO, GSK, INTC, KBH, NOC, TM) originally appeared on BloggingStocks on Wed, 14 Jul 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Should GlaxoSmithKline Pull Avandia from the Shelves?

Should GlaxoSmithKline Pull Avandia from the Shelves? originally appeared on BloggingStocks on Mon, 22 Feb 2010 09:30:00 EST. Please see our terms for use of feeds.

GlaxoSmithKine (NYSE: GSK) may get to sell its diabetes drug Avandia in the US. The FDA and independent researchers say that the drug can increase risk of heart attack, but the drug may be put on the market with a warning label.

The reason for approving the drug for future sale is that FDA "panel members said that studies concerning Avandia were too murky to merit drastic regulatory action and that other diabetes medicines might have similar risks," according to The New York Times. But, one safety officer at the agency said the drug was responsible for as many as 200,000 strokes and heart attacks from 1999 to 2006.

All of this seems more than a bit bizarre, given that one of the major roles of the FDA is to protect US citizens from companies like GlaxoSmithKline who want to make money on drugs that are not always expensive. To say that the risk of heart attack or stroke are no greater than they are with other drugs is akin to saying a car company does not have to put airbags in it vehicles because it will only kill people at the same rate as all other auto firms that market cars without airbags.

The FDA decision is shameful, even if its allows GSK shareholders an "out". The company's shares are already near 52-week lows.

Trading health for profits seems to be a bad bargain.

Douglas A. McIntyre is a partner at 24/7 Wall St.

GlaxoSmithKine's Avandia: Is a warning enough? originally appeared on BloggingStocks on Tue, 31 Jul 2007 08:30:00 EST. Please see our terms for use of feeds.

GlaxoSmithKline (NYSE: GSK) volatility elevated into 7/30 Food & Drug Administration-FDA meeting on Avandia.

• GSK closed at $49.63. A FDA advisory committee meeting on 7/30/07 will review the heart risks of GSK's diabetes drug Avandia.
  
• The New England Journal of Medicine carried a story on 5/21 saying, Avandia "significantly increases" the risk of heart attack.
  
• GSK August option implied volatility of 35 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

American Home Mortgage (NYSE: AHM) volatility elevated into delayed dividend payment.

• AHM invests in mortgage-backed securities and mortgage loans.
  
• AHM announced after the market close on 7/27/07 it will delay payment of its dividend on it common stock to preserve liquidity.
  
• Freidman Billings says: "We are lowering our price target on AHM to $3.00 from $15 to reflect the uncertainty of the unprecedented liquidity events in the overall market and issues specific to AHM's REIT structure."
  
• AHM August implied volatility is at 163; puts are at 198; above its 26-week average of 56 according to Track Data, suggesting larger price risks. AHM puts are priced higher than calls on AHM being difficult to borrow.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 7-30-07: GlaxoSmithKline volatility elevated into FDA meeting originally appeared on BloggingStocks on Mon, 30 Jul 2007 10:15:00 EST. Please see our terms for use of feeds.

Gap Inc. (NYSE: GPS) volatility Elevated into new CEO. GPS, the San Francisco based parent company of 3,200 Gap, Old Navy, and Banana Republic stores, appointed Glenn Murphy, 45, to serve as GPS's Chairman and CEO and as a member of the Board of Directors. Smith Barney upgraded GPS to Buy. SBSH says: "The new CEO can positively impact customer focus and in-store experience." GPS over all option implied volatility of 31 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.

Target Corp. (NYSE: TGT) volatility increases; TGT sells off after Ackman announces position. TGT closed at $62.10. William Ackman's Pershing Square owns a 9.6% position in TGT. Robert Ulrich, TGT's Chairman of the Board, filed to sell one million shares of TGT on 7/12 through SEC form 144. TGT August option implied volatility of 35 is above its 26-week average of 24 according to Track Data, suggesting larger price risks.

GlaxoSmithKline (NYSE: GSK) volatility Elevated into 7/30 FDA meeting on Avandia. GSK closed at $49.63. A FDA advisory committee meeting on 7/30/07 will review GSK's diabetes drug Avandia. The New England Journal of Medicine carried a story on 5/21 saying, Avandia "significantly increases" the risk of heart attack. Cowen says: "It is difficult to envision what GSK could present that would significantly alter FDA and prescriber sentiment." GSK August option implied volatility of 30 is above its 26-week average of 20 according to Track Data, suggesting larger risk.

General Motors Corp. (NYSE: GM) volatility Elevated on tighter credit and into 7/31 EPS. GM closed at $31.10. GM will report EPS on July 31st. GM August over all option implied volatility of 53 is above its 26-week average of 37 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 7-28-07: volatility elevated in Gap & Target; suggesting more risk originally appeared on BloggingStocks on Sat, 28 Jul 2007 11:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that CDW Corporation (NASDAQ: CDWC), a $6B market cap technology retailer, is being hotly pursued by a number of private equity firms including Madison Dearborn Partners.
• Avaya Inc (NYSE: AV), a telecommunications equipment maker, is said to be interested in selling all or part of the company, and is in talks with private equity firms and strategically interested companies, the Wall Street Journal also reported.

• Dr. Ronald Krall, the medical director for GlaxoSmithKline plc (NYSE: GSK) told the New York Times that some of the 4,450 patients enrolled in the drug trial for Avandia have dropped out due to safety concerns
• Norsk Hydro ASA (NYSE: NHY) is looking at the possibility of making an offer for Canadian aluminum producer Alcan Inc (NYSE: AL), Globe and Mail reported.
• The Sydney Morning Herald reported that mining company Rio Tinto plc (NYSE: RTP) has hired Deutsche Bank AG (NYSE: DB) to advise it on a possible bid for Alcan.

• According to a report from Chinese-language Commercial Times and noted in DigiTimes, Quanta Computer has reportedly received an order for five million iPhones from Apple Inc (NASDAQ: AAPL) and that the 2nd generation device will offer "a different outer design to fit different markets."

Newspaper wrap-up 5-29-07: CDW Corporation being pursued by private-equity originally appeared on BloggingStocks on Tue, 29 May 2007 09:43:00 EST. Please see our terms for use of feeds.