The similarities between Glaxo’s Avandia problem and Vioxx are numerous. Here’s a few:

• Same whistleblowing researcher - Dr. Steve Nissen of the Cleveland Clinic
• Same claim - increased heart attack risk
• Same year of FDA approval - both drugs approved in 1999
• Same revenue levels - both were near $3 billion sellers prior to Nissen’s claims

Unfortunately, the most concerning commonalities relate to the possibility that both companies either misrepresented or disregarded the health risks for years in exchange for racking up billions. Here’s a good summary from Bloomberg. I hear Glaxo coming out to defend their product and their actions and it’s all too familiar. Here’s what Glaxo’s CEO said “We expect that once the complete data set on Avandia becomes available, our product will be vindicated.” That reminds me of some comments that former Merck CEO Gilmartin put out there prior to finally pulling the plug on Vioxx.

I can understand that GSK may want to continue selling Avandia, but it seems to me they need to let the safety data speak for itself. Merck’s legal troubles were only enhanced by the perception that sales came before safety.  I fear that Glaxo is going down this road and while I am sure it makes the trial lawyers happy, investors should not be too excited.