The launch of an asthma inhaler by Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA) is likely to put GlaxoSmithKline plc (ADR)(NYSE:GSK) best-selling Advair in a tight spot.
AirDuo RespiClick from Teva is an inhalation powder. While it may not be a true generic of Advair it has the endorsement of the treatment of asthma in patients aged 12 years and above. It has the control of the same two active ingredients, fluticasone propionate, and salmeterol, which are both found in AirDuo RespiClick.
AirDuo RespiClick has the approval of the U.S. Food and Drug Administration (FDA). Its launch is a significant milestone for the company. “Our intent is to meet the needs of patients, providers, and payers in the U.S. seeking greater access to lower-cost asthma inhaler technology,” says the CEO of Global Specialty Medicines at Teva, Rob Koremans.
Teva’s product has fixed-dose combination asthma therapies. The company’s aim is to reach the wider market with optional treatment for Asthma. The uniqueness in Teva’s RespiClick inhaler compared to that of GSK is that it delivers a lower dose of salmeterol.
The usage of Advair is widespread. It treats chronic obstructive pulmonary disease. In 2016, the product brought £1.83 billion in sales. AirDuo is only approved for asthma.
The willingness to use generic
Teva could be miles ahead with its new development given its readiness to use a generic strategy for the product. According to Bernstein analyst Erica Kazlow, this explains how willing the company is to take on the tough reality.
On the other hand, analyst Elliot Wilbur says that this willingness could come with a hefty reward because Teva’s product is likely to grab 25% of the market by 2018. Sarah Alspach, GSK’s spokeswoman has watered down Teva’s efforts citing that neither AirDuo nor its authorized generic can match Advair.
In the meantime, Hikma Pharmaceuticals Plc (ADR)(OTCMKTS:HKMPY) and Vectura Group PLC (LON:VEC) are also in the race as they await the endorsement of their generic editions. Meanwhile, Teva’s stock closed at $30.76 witnessing an increase of $0.06 or 0.20%.