CORRECTED - UPDATE 1-Glaxo signs $1.5 bln drug deal with Targacept

(Reuters) - LONDON, July 27 - GlaxoSmithKline Plc took
a further step to boost its new drug pipeline on Friday by
clinching a drug development deal potentially worth more than
$1.5 billion with U.S. biotech firm Targacept Inc. .




The alliance gives Europe's biggest drugmaker access to
Targacept's neuronal nicotinic receptor compounds, including an
experimental drug in mid-stage Phase II clinical trials for
acute post-operative pain.


Read more at Reuters.com Mergers News

European Stocks May Drop; Volvo, Hermes, Northern Rock May Fall on Results

(Bloomberg) -- European stocks may fall after Volvo
AB, the world's second-largest truckmaker, reported earnings that
missed analysts' estimates and Hermes International SCA said full-
year revenue growth will be at the low end of its forecast range.

Northern Rock Plc may drop after the bank reported first-
half profit that missed analysts' estimates. Atos Origin SA may
also slide after Deutsche Bank AG recommended selling shares in
France's second-largest computer services company.
GlaxoSmithKline Plc may be active before its second-quarter
earnings report.


Read more at Bloomberg Stocks News

Glaxo's Avandia Fuels Arguments in Congress for New U.S. Drug Safety Laws

(Bloomberg) -- Lawmakers are seizing on last month's
study linking GlaxoSmithKline Plc's diabetes drug Avandia and
heart risks to press for new U.S. drug-safety legislation.

The study, released May 21, showed that Avandia, the world's
best-selling diabetes pill, increased the risk of a heart attack
43 percent. Members of Congress are questioning the Food and Drug
Administration's handling of evidence of side effects since the
drug won U.S. approval in 1999.


Read more at Bloomberg Exclusive News

Glaxo, Top Consumer-Ad Spender, Didn't Publicize Diabetes Drug's Risks

(Bloomberg) -- GlaxoSmithKline Plc was the drug
industry's top advertiser last year, promoting its asthma and
diabetes treatments to patients and doctors. Information the
company didn't make well known is now drawing more attention.

London-based Glaxo knew its Avandia diabetes pill posed a
risk for heart and circulatory complications as early as 1999,
when the medicine won U.S. approval. The cardiovascular concern
wasn't widely disseminated until May 21 when a Cleveland Clinic
Foundation analysis reported that Avandia may cause a 43 percent
higher risk of heart attacks than other drugs.


Read more at Bloomberg Exclusive News

U.K. FTSE 100 Index Declines, Led by Marks & Spencer, GlaxoSmithKline

(Bloomberg) -- U.K. stocks fell. Marks & Spencer
Group Plc, Britain's biggest clothing retailer, led declines
after reporting earnings that missed analysts' estimates.

GlaxoSmithKline Plc dragged European drug stocks lower after
brokerages downgraded the company's shares.


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European Stocks Pare Earlier Advance; GlaxoSmithKline, Novartis Decline

(Bloomberg) -- European stocks pared gains as
GlaxoSmithKline Plc and Novartis AG declined.

The Dow Jones Stoxx 600 Index was little changed at 393.42,
after rising as high as 394.62, as of 3:25 p.m. in London. The
Stoxx 50 was also little changed, and the Euro Stoxx 50, a
measure for the 13 nations sharing the euro, rose 0.2 percent.


Read more at Bloomberg Stocks News

European Stocks Decline, Led by Nokia, GlaxoSmithKline; Adidas Shares Gain

(Bloomberg) -- European stocks fell for the first time in four days after U.S. companies including Yahoo! Inc. and International Business Machines Corp. reported earnings that disappointed some investors.

Nokia Oyj and Atos Origin SA led technology-related shares lower. GlaxoSmithKline Plc and BP Plc paced a slide by exporters after the dollar weakened against regional currencies. Adidas AG rose to a record after Financial Times Deutschland reported Apax Partners Worldwide LLP may buy a stake in the company.


Read more at Bloomberg Stocks News