GlaxoSmithKline's darapladib flops in Ph III CHD trial

UK pharma giant GlaxoSmithKline (LSE:GSK) saw its shares dip 1.3% to £16.29 in mid-morning trading, after the company released much anticipated top-line results on its investigational heart disease drug darapladib that disappointed, failing to meet its endpoint.

Darapladib had been the “great white hope” in the GSK pipeline, a product that could have reached $10 billion in revenues if successful, commented analysts at broker Panmure Gordon, which has now downgraded the stock to Hold from Buy.

The analysts had been forecasting launch of darapladib in 2015, with revenues of only £25 million ($40 million) in the year but had been pinning hopes of significant upgrades from this product. This is now the second big disappointment in the year, following similarly negative outcome from the MAGEA3 trial in September. They noted that, even though a second Phase III trial is still ongoing with results expected in first-half 2014, they believe it will be difficult to gain market registration on one trial alone.