Stiff FDA warning from Avandia

Avandia, the GlaxoSmithKline diabetes drug that has recently faced media furore and controversy, is likely to face a long-term decline in sales, even if the FDA find it to be safe. Shares in UK-based Glaxo have slumped by 13 per cent, knocking an astonishing $23 billion off the market value.
Avandia was the second-largest revenue producer for the firm, but numerous doctors and physicians across the world have turned away from the drug to promote others. The drug is up for Food and Drug Administration review on July 30th to decide whether Glaxo can campaign against researcher claims .
Insurance companies in America are understood to be considering restricting the drugs use. Lawsuits against Glaxo are growing in number. One analyst, Mike Ward of Nomura Code Securities in London, reportedly commented: “Avandia itself is going to struggle whatever happens. Whether it ever bounces back, even if the advisory committee is relatively kind, it’s going to take time.”