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FDA Approves GlaxoSmithKline’s Lupus Treatment (GSK)

By: Dividend.com
Posted: 3/10/2011 8:59:00 AM
Referenced Stocks: GSK;HGSI

British pharmaceutical giant GlaxoSmithKline plc ( GSK ) got some welcome news from the FDA late Wednesday night, as the federal regulator approved a lupus treatment drug that GSK has been pegged to market.

The drug, called Benlysta, was developed by U.S.-based Human Genome Sciences ( HGSI ) and will be marketed and sold by GSK.

Benlysta is the first lupus treatment drug approved in the U.S. since 1955. Lupus, a potentially fatal autoimmune disease, affects 1.5 million Americans and 5 million people worldwide, according to the Lupus Foundation of America.

GlaxoSmithKline shares rose 20 cents, or +0.5%, in premarket trading Thursday.

The Bottom Line
Shares of GlaxoSmithKline ( GSK ) have a 6.38% dividend yield, based on last night's closing stock price of $38.58. The stock has technical support in the $36 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels.

GlaxoSmithKline plc ( GSK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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