FDA Approves Drug By GlaxoSmithKline Plc. (NYSE:GSK) And Theravance Inc. (NASDAQ:THRX)
Northern, WI 05/13/2013 (tradewatchmedia) – The decade long partnership between GlaxoSmithKline Plc. (NYSE:GSK) (Closed: $51.62, Up by 1.81%) and Theravance Inc. (NASDAQ:THRX) (closed: $34.94, Up by 11.59%) has finally won the United States FDA approval for its drug Breo Ellipta. The drug is used to treat lung disorder and could be administered once a day to the patients.
The drug developed by the partners would work by decreasing inflammation around the lungs and by helping relaxation around the airways. Breo Ellipta would help in the treatment of Chronic Obstructive Pulmonary Disease, COPD and airflow obstruction. It had been observed that this form of lung disorder had been the third leading cause of death in the United States.
However, Breo Ellipta developed by GlaxoSmithKline Plc. (NYSE:GSK) and Theravance Inc. (NASDAQ:THRX) comes with a warning that it contains the risk of increasing asthma related drugs and that it is not for young children under 18 years. This treatment is the first of its kind medicine developed by the partners to get FDA approval.
Breo Ellipta would generate $4 billion in worldwide sales at the highest level and this would in turn get converted to $500 million in royalties to Theravance Inc. (NASDAQ:THRX). On the other hand, Theravance Inc. (NASDAQ:THRX) would pay $30 million to GlaxoSmithKline Plc. (NYSE: GSK) following the Food and Drug Administration approval of the drug. The partnership companies are also working on another drug for lung disorder treatment, named Anoro, which would go for FDA approval in December.