Sector Snap: Drug Companies - Forbes.com: "NEW YORK -
U.S. shares of GlaxoSmithKline PLC rose Wednesday on a buyback announcement that offset disappointing earnings news, while other companies in the sector were mixed.
Earlier, the world's second-largest drug company said its second-quarter profit edged 1.4 percent higher while revenue fell 2.4 percent. But news that the company is doubling its stock buyback program to 12 billion pounds ($24.7 billion) through 2009 sent shares higher.
Shares of GlaxoSmithKline rose $1.22, or 2.4 percent, to $52.52 in afternoon trading. The stock has traded between $50.58 and $59.98 in the past year.
The American Stock Exchange's Pharmaceutical Index, which tracks 15 major drug makers including GlaxoSmithKline, rose 1.09 points to 348.99.
Still, some analysts were pessimistic on GlaxoSmithKline.
Bear Stearns analyst Alexandra Hauber, in a note to investors, downgraded the stock to 'Underperform' from 'Peer Perform,' citing pressure from blockbuster diabetes drug Avandia and concerns over the company's drug pipeline.
Elsewhere in the sector, some drug companies rose on a combination of factors including earnings-related news."
