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GlaxoSmithKline slips on analyst downgrade, worries about HIV competition

Published 07/05/2017, 07:30 AM
© Reuters.  GlaxoSmithKline slips on analyst downgrade, worries about HIV competition
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  • GlaxoSmithKline (NYSE:GSK) shares slip premarket following a Citigroup (NYSE:C) downgrade based on potential losses in the HIV treatment market.
  • Citigroup downgrades GlaxoSmithKline from Buy to Neutral and cut earnings guidance by 9%.
  • Analyst Andrew Baum thinks Merck’s development-stage HIV drug EFdA, which could hit the market in 2021, poses a significant threat to GSK’s profitable ViiV Healthcare unit and the drug dolutegravir.
  • Baum forecasts EFdA adjusted peak annual sales of $150M but thinks the success could add $5B to Merck’s guidance.
  • GlaxoSmithKline shares are down 1.38% premarket.
  • Now read: GlaxoSmithKline: 3 Reasons You Should Be Concerned


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