) recently announced that its subsidiary Stiefel's Fabior
(tazarotene) Foam, 0.1%, received approval from the U.S. Food and
Drug Administration (FDA). Fabior Foam, 0.1% is approved as a
topical treatment for acne vulgaris in patients 12 years and
The approval was based on data from two pivotal phase III
studies conducted with Fabior Foam. The 12-week, randomized and
double-blind trials were conducted in a total of 1,485 patients
with moderate-to-severe acne vulgaris. Patients receiving Fabior
Foam demonstrated significant reductions in lesion counts.
In the U.S., acne is the most common skin related problem and
affects primarily adolescents and young adults. Hormonal changes,
heredity, certain medications and greasy cosmetics are believed to
be the possible causes of acne.
Neutral on Glaxo
We currently have a Neutral recommendation on Glaxo. The stock
carries a Zacks #3 Rank (Hold rating) in the short run. A major
part of Glaxo's revenues will be exposed to generic competition as
multiple drugs are scheduled to lose exclusivity in the next few
We expect the company's top line as well as gross margins to
remain under pressure in the coming quarters. In addition to
generic competition, the U.S. health care reform and E.U. pricing
pressure will continue to affect sales.
Glaxo recently launched a hostile bid to acquire the outstanding
Human Genome Sciences, Inc.
) for a cash payment of $13 per share.
Glaxo would get exclusive rights to Benlysta as well as other
candidates such as darapladib and albiglutide if it succeeds in
acquiring Human Genome. The acquisition will raise the returns on
research and development (R&D) expenses for Glaxo and lead to
cost synergies of minimum $200 million by 2015. We believe this
potential takeover would be accretive for the company from
GLAXOSMITHKLINE (GSK): Free Stock Analysis
HUMAN GENOME (HGSI): Free Stock Analysis Report
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