MARKET TALK: GSK Avandia News Clearly Positive - Evolution

15th Jul 2010 09:13

0813 GMT [Dow Jones] The FDA's vote in favor of keeping Avandia on the U.S. market is clearly good news for GlaxoSmithKline (GSK.LN), says Evolution Securities. It means they will retain the two additional years of profits and it reduces the scope for additional legal costs. It also reduces the likelihood of the product being removed from the market in other parts of the world, Evo says. However, notes the edge of the good news has been slightly removed in the GBP1.57Bln legal charges they are taking to substantially settle and provision for all outstanding legal cases. Reiterates buy recommendation and 1550p price target on the stock. Shares +0.7% at 1190p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 15, 2010 04:13 ET (08:13 GMT)