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Glaxo's Shingles Vaccine Shingrix Gets Approval in Canada

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GlaxoSmithKline plc (GSK - Free Report) announced that its vaccine Shingrix has been approved in Canada for the prevention of shingles (herpes zoster) in older patients (aged 50 years or older). This is the first regulatory approval for this key pipeline product of Glaxo which has blockbuster potential.

So far this year, Glaxo’s shares have underperformed the industry. The stock has increased 6.4% compared with the industry’s gain of 18.3%.

Meanwhile, Shingrix is under review in the United States, EU, Australia and Japan. In fact, last month, Glaxo announced that an FDA advisory panel unanimously voted recommending approval for Shingrix, in older patients. The company also added the FDA’s Vaccines and Related Biological Products Advisory Committee were impressed by the efficacy/safety data from Shingrix studies. The company expects approval of Shingrix in the United States and Europe this year.

Shingrix is also being evaluated in immuno-compromised patient populations, including solid and hematological cancer patients, hematopoietic stem cell and renal transplant recipients and HIV-infected people.

Glaxo expects its new pharmaceutical and vaccine products including potential contributions from the Shingrix to deliver sales of £6 billion per annum by 2018.

Shingrix is also being evaluated in immuno-compromised patient populations, including solid and hematological cancer patients, hematopoietic stem cell and renal transplant recipients and HIV-infected people.

Zacks Rank & Stocks to Consider

Glaxo carries a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include Adaptimmune Therapeutics plc (ADAP - Free Report) and Celgene Corp. (CELG - Free Report) and Novo Nordisk A/S (NVO - Free Report) holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adaptimmune’s loss per share estimates have narrowed from $1.07 to 95 cents for 2017 and from $1 to 90 cents for 2018 over the last 60 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. Share price of the company has increased 88.6% year to date.

Celgene’s earnings per share estimates have moved up $9 to $9.02 for 2018. The company pulled off positive earnings surprises in all the trailing four quarters, with an average beat of 3.80%. The share price of the company has increased 17.9% year to date.

Novo Nordisk’s earnings per share estimates have moved up $2.37 to $2.38 for 2017 and from $2.51 to $2.53 for 2018. The company pulled off positive earnings surprises in three of the trailing four quarters, with an average beat of 3.63%. The share price of the company has increased 38% year to date.

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