Glaxo's Viagra challenge delayed

GLAXOSMITHKLINE has suffered a new setback when plans to launch a rival to Viagra were delayed by US watchdog, the Food and Drug Administration.

The drugs giant and its partner, German group Bayer, were ordered to supply more clinical information about vardenafil, a treatment for erectile dysfunction, delaying its launch until next year.

A spokesman said they were determined to bring the product to market 'as quickly as possible and believe the compound can provide a new alternative for millions of men'.

The decision by the FDA, which is taking an increasingly tough line on approving new drugs, came as GSK turned in strong second-quarter figures and also appeared to rule out a merger with another drug group.

There has been speculation of another blockbuster deal since Pfizer announced a £38bn get together with Pharmacia.

But GSK chief executive Jean-Pierre Garnier said: 'I am less interested in consolidation than I am in developing the new product pipeline.' There were 118 projects in an early- stage pipeline and 56 new products in development. 'If ever I get depressed about the stock market I just call over one of my scientists and ask him to talk about his work,' Garnier said.

GSK shares have plummeted on worries about delays in finding new drugs and loss of patents on best selling medicines which has enabled a cut-price version of the antibiotic Augmentin to go on sale.

But GSK produced a resilient performance with second-quarter profits up 7% at £1.8bn and sales up 8% to £5.4bn. Sales of antidepressant Paxil and asthma drug Advair were among the star performers.