29 October, 2007

Volume 1 Number 35
Brought to you by Thomas Jefferson University’s Department of Health Policy

GSK: Announces Plans To Eliminate Jobs, Close Facilities

GlaxoSmithKline officials on Wednesday announced plans to eliminate an unspecified number
of jobs and close some manufacturing facilities as part of an effort to save 700 million pounds, or
about $1.4 billion, over the next three years (AP/New York Times, 10/25). David Stout,
president of worldwide pharmaceutical operations at GSK, said that cost reductions in the
company sales and manufacturing divisions will account for about 80% of the savings and that
cost reductions in research and development will account for 20% (Raleigh News & Observer,
10/25). (AmericanHealthLine, 10/25)

FDA: Might Seek Warning on Avandia Label for Heart Attack Risk
FDA might ask GlaxoSmithKline to add a new black box warning to the label of the type 2
diabetes medication Avandia related to increased risk for heart attacks associated with the
treatment, according to individuals familiar with discussions between the agency and GSK. The
Avandia label currently includes a black box warning related to increased risk for heart failure
associated with the medication (Wall Street Journal, 10/24; AmericanHealthLine, 10/24)

FDA: Panel Urges Ban on OTC Cold Treatments for Younger Children
An FDA advisory panel on Friday voted 13-9 to recommend that the agency ban the sale of over-
the-counter cough and cold medicines for children younger than age six, the New York Times
reports. Members voted 21-1 that the products should be banned for children younger than age
two (New York Times, 10/20). The panel by a 15-7 vote decided against a similar
recommendation on use of the drugs for children ages six to 11, according to the Washington
Post. The decisions also include antihistamines for treatment of allergies. FDA is not required to
act on the recommendations, but agency officials said they would review the panel's work and
formulate the necessary steps to address the issues raised (Washington Post, 10/20)
(AmericanHealthLine, 10/22).

Pharmacy Benefit Caps And The Chronically Ill

In a paper published in the current issue of Health Affairs, Geoffrey F. Joyce and colleagues
examine “medication use among retirees with employer-sponsored drug coverage both with and
without annual benefit limits.” The authors “find that pharmacy benefit caps are associated with
higher rates of medication discontinuation across the most common therapeutic classes and that
only a minority of those who discontinue use reinitiate therapy once coverage resumes. Plan
members who reach their cap are more likely than others to switch plans and increase their rate
of generic use; however, in most cases, the shift is temporary.” More at:
http://content.healthaffairs.org/cgi/content/abstract/26/5/1333

Any questions regarding this newsletter can be directed

to Vittorio Maio at vittorio.maio@jefferson.edu.