We eliminated our position in GlaxoSmithKline PLC (GSK) due to concerns that the company will not be able to preserve the recent level of revenue or profitability generated by its respiratory franchise. Despite its development of high efficacy next generation respiratory drugs that have come to market in advance of Advair losing patent protection, the company is facing extreme pricing pressure from health care payors. Diversified machinery manufacturer Dover Corp. was eliminated as the stock price approached our estimate of intrinsic value.
From Diamond Hill Capital (Trades, Portfolio)'s Select Fund Third Quarter 2014 Commentary.
