Robb Claims Wellcome Is Undervalued By Glaxo

Wellcome is worth more, says company chairman and chief executive John Robb, and its board is working to achieve a better offer than that being made by fellow UK drug company Glaxo (Marketletters passim). This is the message that went out to shareholders last week in the form of a document responding to Glaxo's bid.

The company is resting its claim that it is undervalued partly on the strength of its four key products Retrovir (zidovudine), Lamictal (lamotrigine), Zovirax (aciclovir) and just launched Valtrex (valaciclovir).

Keith Merrifield, group marketing director, revealed internal sales projections for the products at an impromptu press conference last week. He pointed to the company's sales projections for anti-AIDS agent Retrovir and antiepileptic agent Lamictal as being significantly better than the more conservative expectations of industry analysts. Also, Wellcome expects sales of Zovirax to weather patent expiry better than analysts suggest, and Mr Merrifield said that the company is campaigning to convert general practitioners to prescribing its follow-up to Zovirax, Valtrex.