As we expected, GlaxoSmithKline (link will open in a new window) reported weak second-quarter results, which were hurt by generic competition and further declines in diabetes drug Avandia. Also, Glaxo set out a new strategy initiative to expand its product offerings in more geographic locations as well as to focus on increasing the value of new drugs. In contrast to Glaxo's previous strategy of making slight enhancements to existing drugs, we believe the new goals hold better potential to increase shareholder value.