Biotech firm Shire PLC (ADR) (NASDAQ:SHPG) has put in an application seeking to have its treatment for dry eye disease approved in Europe. The eye drop which could potentially turn out to be a blockbuster is sold under the Xiidra brand name in the United States. Xiidra, whose generic name is lifitegrast, was granted approval by the U.S. Food and Drug Administration last year in August.
Shire markets Xiidra as being a pioneer in treating symptoms and signs of dry eye. Its competitor, Restasis, is manufactured by Allergan plc Ordinary Shares (NYSE:AGN) and both enjoy a similar price. Restatis was approved to increase the levels of tear production as a result of inflammation and has been in existence for over ten years. Both Xiidra and Restasis are sold for approximately $5,000 a year.
Market share
Since it was launched last year in August Xiidra’s market share has risen to 22%. In the United States revenues from the drug have already reached $150 million since it was launched. According to analysts the drug is expected to hit blockbuster status in 2022 when it is projected to reach the $1 billion annual revenue mark. Earlier in the year the chief executive officer of Shire, Flemming Ornskov, said that approximately 65% of patients had received a prescription for Xiidra.
“In other words, our awareness campaign is clearly working, as we are causing patients to talk to their doctor about dry eye disease and growing the overall market,” said Ornskov.
Follow-up drugs
Besides Xiidra, Shire is also developing another dry eye drug as a follow-up. The biotech firm is also developing drugs aimed at other eye diseases such as glaucoma and infectious conjunctivitis. Prior to launching Xiidra, Shire was concentrating on developing drugs aimed at treating rare diseases as well as those aimed at hyperactivity disorders and attention deficit disorders.
Though the largest number of its executives and employees are in Boston, Shire is headquartered in Ireland due to tax reasons. Shire has two campuses in Massachusetts – one in Lexington and another in Cambridge.
On Tuesdays hares of Shire PLC fell by 0.04% to close the day at $147.71