Diabetes drug impacts on Glaxo profit

Fallout from the recent controversy over diabetes drug Avandia is having an impact on its manufacturer’s profits. GlaxoSmithKline, one of the foremost drug companies in the world, have posted second-quarter earnings that fall below expectations. Glaxo are planning to expand their stock buyback program, which may help to alleviate investor concerns.
Glaxo says that despite the hit to their profit, they will buy back $25 billion of stock in the next few years. The news put Glaxo shares back up. Glaxo’s first quarter earnings were approximately $2.69 billion.
Avandia has been through a media rollercoaster in recent months, following a controversial report published in the New England Journal of Medicine . Avandia has slumped in sales following press scrutiny.