Broker snap: Glaxo upgrades expected

2nd Nov 2009 12:54

Panmure Gordon has reiterated its 'buy' recommendation on GlaxoSmithKline in the wake of the release of positive data for Lupus drug candidate Benlysta in a phase III clinical trial known as BLISS-76.Panmure Gordon believes the Glaxo 'investment thesis moves from a recovery stock to growth,' and, as such, 'pipeline progress and associated upgrades is an important component of our thesis on the stock,' the broker said, adding that it expects the Benlysta update to trigger earnings upgrades.'It is worth noting that the clinical trial was under a so called Special Protocol Assessment (SPA) agreement with the FDA [US Food and Drug Administration], which should ensure a relatively routine registration for the product although an advisory committee meeting to appraise the data ahead of approval is almost certain,' Panmure Gordon added.The broker has a price target of 1400p for the stock.