Drug label change wipes £4bn off Glaxo value

OVER £4 billion was wiped off the value of GlaxoSmithKline (GSK) yesterday after authorities proposed changes to the way its best-selling asthma drug is labelled in the United States.

Glaxo shares slumped 5% after the US Food and Drug Administration (FDA) recommended Advair should only be used by patients who have not responded to other medication. The drugs giant said it disagreed with the FDA, which claimed both Advair and Glaxo’s Serevent treatment may make asthma more severe and should not be used as first treatments.

Advair is Glaxo’s biggest-selling drug, accounting for around a tenth of sales.