Sales for the pharma majors in most developed markets have flattened or are growing at a slower pace. Now, emerging markets are playing a crucial role as a market survey predicts this region would contribute 50% growth in 2009.

With this backdrop, we are happy to find GlaxoSmithKline (GSK) acquiring the branded generics business of Bristol Myers Squibb (BMY) in the countries of Lebanon, Jordan, Syria, Libya and Yemen for a cash consideration of $23.2m (£14.2m). This transaction consists of a portfolio of 13 branded pharmaceuticals with annual sales of $11.8 million in 2008.

GSK is the world’s second largest pharmaceutical company, with operations primarily based in the U.K. and the U.S. This move is seen as the company’s strategy to expand its presence in branded products in emerging markets. Emerging markets have witnessed robust demand for branded products driven by a large population and middle class prosperity.

GSK is trying

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Avandia Sales StabilizingSales of GlaxoSmithKline's (GSK) Avandia have been significantly negatively impacted due to safety concerns, but it appears sales are close to stabilizing. We believe that sales are now at or very near their bottom. While sales of Avandia have been cut in half from their peak level reached in 2006, it remains a very important product, and stabilizing sales represents very good news.Generics a Predominant IssueOther than the Avandia issue, Glaxo still has to deal with generic erosion of a number of drugs including Coreg IR, Flonase, Wellbutrin XR, Paxil, Lamictal, Requip, Valtrex and Imitrex. On the positive front, we continue to be impressed by the vaccine franchise and look forward to the contribution from Rotarix, Promacta and Synflorix. And although we were disappointed by the recent delay with Cervarix, ...

For Immediate Release

Chicago, IL - April 9, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GlaxoSmithKline plc (GSK), General Growth Properties (GGP), Agria Corp (GRO), Regis Corporation (RGS) and Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA).

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Here are highlights from Wednesday's Analyst Blog:

Glaxo's Avandia Issue Priced-In

Sales of Avandia have been significantly negatively impacted due to safety concerns, but it appears they have recently stabilized. We believe that sales are now at, or very near, their bottom. While sales of Avandia have been

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