Glaxo soars on vaccine hopes

GLAXOSMITHKLINE shares roared to a 17-month high yesterday as analysts learned that a potential blockbuster cervical cancer vaccine could be more potent than first thought.

GSK told a conference in Vancouver that Cervarix protects women from 82% of the papilloma viruses that cause the killer disease, rather than the 70% immunity it was originally thought to offer.

This would make it more effective than a rival product being rushed to the market by drugs giant Merck. Analysts believe the GSK drug could be worth £2bn-a-year in sales, while the company's boss JP Garnier said last week that he thought it could be the world's biggest-selling vaccine ever.

The company's confidence in Cervarix was behind its decision to buy fledgling drugs firm Corixa last week for £159m. The American biotech produces a vital ingredient in Cervarix which enhances the effects of the other active agents.

Buying Corixa guarantees it control of the product, called MPL. It may also save it money in the long-run as GSK (up 28p at 1,340p) was set to shell out more in royalties than it is paying for Corixa.