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Risks
1. Fluctuating market conditions: The fluctuations in market conditions can impact the stock value of GlaxoSmithKline, making it vulnerable to potential losses.
2. Competition: GSK faces a lot of competition, particularly from large generic drug companies. This can lead to pricing pressures and reduced profit margins.
3. Potential Litigation: GSK has been involved in a number of legal disputes in the past. These legal proceedings can be costly and cause reputational damage.
4. Product Recall Risks: Due to manufacturing defects or possible product contamination, GSK faces potential risks of product recalls. This can lead to financial and reputational losses.
5. Regulatory Uncertainty: Changes in regulations and laws can have a significant impact on GSK’s ability to market and distribute its products. This can significantly affect its profitability.