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Pin to quick picksGlaxosmithkline Share News (GSK)

Share Price Information for Glaxosmithkline (GSK)

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Share Price: 1,728.50
Bid: 1,727.00
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Change: 23.50 (1.38%)
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GSK's nicotine patches and gum feel the heat from e-cigarettes

Fri, 16th Jan 2015 09:51

By Kate Kelland

LONDON, Jan 16 (Reuters) - GlaxoSmithKline isfeeling the heat from the rapid growth in electronic cigarettes,with enthusiasm for the nicotine delivery devices dampeningsales of the British drugmaker's patches and gum, its chiefexecutive said.

In an interview with Reuters, Andrew Witty also said he andhis team had spent "a few days" exploring whether the drugmakershould compete directly by becoming an e-cigarette maker, buthad swiftly decided against it.

"We've decided we're not going to play. We've consciouslyhad a think about it but we're not going to play," Witty said.

"Of course, it's definitely taken a bit of our market, noquestion at all -- but there's a lot of competition in thatspace anyway."

GSK sells various nicotine replacement therapies (NRT) andsmoking cessation products, mainly in the form of patches orgum, including the brands Nicorette, NicoDerm CQ and themedicine Zyban.

It is in the process of forming a consumer health jointventure with Novartis, whose brands includeNicotinell, making the combined business the market leader inthe $3 billion-a-year smoking cessation market.

A study last year found smokers who switch to e-cigarettesto try to kick their tobacco habit are more likely to succeed inquitting or cutting down than users of nicotine patches.

But the electronic devices, sometimes known as vaporisersbecause of the vapour they produce, are the subject of fiercedebate, with some experts concerned they may be a gateway tonicotine addiction and tobacco smoking.

Witty said e-cigarettes were "just too controversial" forGSK to want to get involved in at this stage, adding that"there's not enough data," to provide robust evidence of theproducts' risks and benefits. (Editing by Sam Wilkin)

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