U.S.-traded shares of European drug makers gained Friday, with GlaxoSmithKline PLC's stock edging up after the Food and Drug Administration approved its rotavirus vaccine Rotarix.
Late Thursday, the British company said it had received approval to market Rotarix, which treats the most common cause of diarrhea in infants. GlaxoSmithKline shares added 61 cents to $45.33.
Cowen and Company analyst Steve Scala said Merck's RotaTeq vaccine has a "significant lead" in the market. He expects Glaxo will report $150 million in Rotarix sales this year, followed by $175 million in 2009 and $250 million in 2010.
Scala noted that Rotarix is given in two doses of one milligram each, instead of RotaTeq's three two-milligram doses.
GlaxoSmithKline trades as ADRs, or American Depositary Receipts, which are securities that allow U.S. investors to trade shares of companies based overseas.
Elsewhere in the sector, ADRs of British rival AstraZeneca PLC rose $1.16, or 2.8 percent, to $42.09.
Elan Corp. PLC, and Irish drug maker that markets products including Tysabri, edged up 38 cents to $21.67.
ADRs of French biotechnology company Flamel Technologies SA gained 23 cents, or 2.5 percent, to $9.58.
Shire PLC of Britain picked up 84 cents to $60.19.
The Bank of New York Europe ADR index rose 1.09 points to 175.47.
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