GlaxoSmithKline diet drug facing competition

British drugs manufacturer GlaxoSmithKline achieved success last year with its weight-loss pill Alli but could face increased competition in 2008, it has been reported.

Investment adviser Hemscott highlighted the over-the-counter drug’s success, noting that the pharmaceutical firm reported third-quarter sales of ?417 million, which it ascribed partly to Alli sales.

Pfizer recently joined with Bristol-Squibb to develop an obesity solution and “at least 30” companies are now looking to join the market, it continued.

“Others vying for a piece of the obesity drug market include Orexigen Therapeutics, Novo Nordisk, Merck & Co, Arena Pharmaceuticals, Vivus and Athersys,” Hemscott commented.

In related news, GlaxoSmithKline’s share price rose yesterday, following the news it has begun to test its developing asthma drug further.

The pharmaceutical giant’s shares rose ?0.15 to ?12.85 when it announced that its studies so far have been “encouraging”.

It is planning trials involving 2,400 people, which it hopes to complete by the end of 2008.