MARKET TALK: Debate on GlaxoSmithKline's Avandia To Continue

15th Jul 2010 07:24

0624 GMT [Dow Jones] The debate on GlaxoSmithKline's (GSK.LN) Avandia medicine will likely continue, despite the FDA Advisory Committee voting in favor of keeping the drug on the U.S. market, says Jefferies. While the shares responded positively in the U.S. following the announcement, says there may be further talk as to how precisely the FDA will now act. But says the positive panel recommendation should be seen to cancel out the perceived increased litigation risk. Adds that a short-squeeze in the very near term may also help the shares to perform. Maintains buy rating and 1275p price target. Shares closed on Wednesday at 11812p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 15, 2010 02:24 ET (06:24 GMT)