Shares in Consort Medical (CSRT) are enjoying a 12.6% rally to 934.4p after its partner Mylan finally manages to gain approval for a generic version of GlaxoSmithKline’s (GSK) asthma treatment Advair.
Sales declines of Advair at pharma giant GlaxoSmithKline may accelerate this year when Mylan launches.
Shares in GlaxoSmithKline dipped 0.5% to £14.73 as approval has been expected for a while despite a series of setbacks for Mylan.
This will still be a victory for Mylan and Consort who managed to beat injectables specialist Hikma (HIK) and partner Vectura (VEC) in the race to get a generic version of Advair approved first.
SHARES IN CONSORT STILL IN RECOVERY MODE
Yet Consort’s share price is still hammered since US regulatory authorities blocked the launch of Wixela in March 2017. Shares in Consort are down 11.7%, which includes today’s rally.
In December, Consort warned of a £3m pre-tax profit hit from Mylan’s approval setback as the company already had a lot of inhalers from Consort that were yet to be sold, suppressing demand for more stock.
PEAK SALES TO HIT £15M
Shore Capital analyst Adam Barker assumes risk-adjusted sales of Wixela of £0.5m this year with forecast peak sales of £15m.
Panmure Gordon analyst Julie Simmonds expects Mylan to have a 12-month head start compared to its rivals and will take advantage of this by aggressively marketing Wixela in the US.
Simmonds is also confident Consort is now due for a re-rating as the approval removes uncertainty from forecasts.