GSK keeps eye on UK changes

Nov 5 2008 by Peter McCusker, The Journal

THE FTSE 100 Index ended yesterday’s session 196.22 points higher at 4639.50.

China Goldmines, which mines gold in Hunan Province in China and whose head office is on the Quayside in Newcastle, said that it has invested to achieve Western health and safety standards.

The company currently has three plants in operation and has a total capacity of 350 tonnes per day.

In addition, China Goldmines reported that it had a strong cash position of US$17.3m at the end of September. The shares closed 6.85% lower at 34p.

Pharmaceutical firm GlaxoSmithKline will be closely observing the situation in the United Kingdom after Health Secretary Alan Johnson announced that patients will be able to pay privately for medicines while still receiving NHS care.

Mr Johnson also pledged to speed up the process of approving new drugs for use on the NHS with the aim of minimising the numbers forced to pay for treatment.

Mr Johnson’s recommendations set out closer working with the pharmaceutical industry to agree prices for new drugs. Risk-sharing schemes with pharmaceutical firms – where the NHS only pays for treatments if they are shown to work in individual patients – are also likely to become more commonplace.

Shares in GlaxoSmithKline closed 0.28% lower at 1246p.

Ken Oiwa ken.oiwa@brewin.co.uk

Brewin Dolphin is a broker to China Goldmines.