|
 Industry analysts believe the generic threat has now been pushed
back until mid-2018, providing Britain's biggest drugmaker with a
short-term profit boost.
Hikma Pharmaceuticals said on Thursday the Food and Drug
Administration (FDA) had decided not to approve its version of the
inhaled treatment for asthma and chronic lung disease at this time,
due to "major" issues with the application.
The firm said it was unlikely to receive approval this year.
Hikma and its partner Vectura are in a race with Mylan to launch the
first U.S. generic copy of Advair that can be substituted for the
original product in pharmacies. The FDA has already delayed approval
of Mylan's version.
Hikma and Mylan have received so-called complete response letters
from the FDA that were categorized as major. Dealing with a major
amendment to a generic drug application means a delay of 10 months
for an FDA response, according to agency guidelines.
Shares in Hikma and Vectura fell 8 and 9 percent respectively in
early trading.
Hikma said it was in the process of reviewing its response, adding
it appeared no material issues were raised to prevent its proposed
inhaler device being classified as a substitute.
Mylan, whose application for a rival generic was turned down in
March, disclosed on Wednesday that the FDA had designated its
application as requiring a major amendment.
However, the U.S. firm said it disagreed with the reasoning behind
the FDA decision because the agency was asking it to comply with
draft guidance rather than pre-agreed rules.
UBS analyst Michael Leuchten said the problems faced by Hikma and
Mylan highlighted the challenges of making a generic copy of Advair
that was acceptable to the FDA, although such copies were already
available in Europe.
Nonetheless, generics are expected in the United States eventually
and he noted that GSK was giving a 20 percent discount on Advair
this year in anticipation of their arrival.
GSK REAFFIRMS GUIDANCE
GSK has been bracing for the launch of U.S. generic Advair without
knowing exactly when copies will arrive.
[to top of second column] |
Without a generic substitute for Advair in the U.S. market this
year, GSK has said it expects adjusted 2017 earnings per share (EPS)
to rise by between 5 and 7 percent, in constant currencies. If they
had launched by mid-year, it had forecast EPS would be flat to
slightly lower.
A GSK spokesman reiterated that guidance on Thursday and shares in
the company, which were trading excluding a 19 pence interim
dividend, were little changed in morning trade.
Dealing with the threat of competition to Advair, which has
generated more than $1 billion in annual sales since 2001, is the
first big challenge facing GSK's new chief executive, Emma Walmsley,
who took over last month.
GSK has a number of new respiratory drugs in which sales are rising
but the loss of Advair, when it happens, will still hit profits,
since the old drug generates high margins.
Teva Pharmaceutical Industries has launched a cut-price competitor
to Advair in the United States but its product is not a true
generic, despite containing the same two active ingredients,
fluticasone propionate and salmeterol.
Advair's U.S. sales last year totaled 1.83 billion pounds ($2.37
billion) out of group turnover of 27.9 billion pounds.
($1 = 0.7734 pounds)
(Editing by Keith Weir and Edmund Blair)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
