Analysts recommend GSK after Teva announces Advair generic delay

The delay for the generic version of UK pharma major GlaxoSmithKline’s (LSE: GSK) Advair (fluticasone and salmeterol) coupled with the advances in the company’s GSK2606414 product in Alzheimer’s disease has prompted analysts at Panmure Gordon to point to today’s share price level as good entry level to the stock.

They pointed to Israel-based generics manufacturer Teva Pharmaceutical Industries (NYSE: TEVA) which said it did not expect to see generic copies of Advair until 2018 at the earliest. They added that, with data from darapladib pending this quarter, GSK stock could be on its way up.

Analyst Savvas Neophytou said: “Fear of increased competition to the company’s biggest product Advair in September with new guidelines from FDA prompted a sell-off in recent weeks. We note that there are a number of process steps (and a number of years) that need to take place ahead of any possible increased competition, the market has taken a dim view of developments which provide a good entry level into the stock in our view.”