That’s what Tim Anderson of Prudential Equity writes in an investor note today previewing the drugmaker’s earnings announcement, which will be made tomorrow morning.

He points out that GlaxoSmithKline engaged in “big, broad-based price increases” that took place at two different times last year, including mid-December. The prices on several big franchises, such as Advair and Avandia, rose by 10 percent to 15 percent last year.

That’s more than the inflation rate, isn’t it?

Never mind. The price hikes should boost 2006 financial results. But Anderson cautions that “future price increases of this magnitude in the U.S. may not be sustainable, however.”

One would think. Then again, nothing stopped Glaxo last year.

[tags]GlaxoSmithKline, Prices[/tags]