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Cipla's respiratory portfolio received a boost with the UK drug regulator approving its key asthma inhaler. The inhaler will be launched within the next few weeks, the drug maker announced Friday.
Cipla's Sereflo inhaler is a generic version of GSK's blockbuster Advair. In the UK, it is called Seretide Evohaler and has a market size of $278 million. Cipla will be the third company after GSK and Mylan to sell the inhaler in Britain.
In 2015, GSK earned 3.7 billion pounds from Advair inhaler but its sales are declining due to competition and pricing pressure.
The respiratory segment contributes $400 million or about 25 per cent of Cipla's revenue, according to its latest annual report for 2015-16. It has three dedicated manufacturing sites for respiratory products and is among the largest manufacturers of metered dose inhalers.
While Cipla began selling Sereflo metered dose inhaler in Europe in 2014, its launch in Britain remained stuck because of lack of approval. It lost out to Mylan which launched the product in Britain last year.
Cipla is yet to begin trials of Sereflo inhaler for the US but will be launching a different metered dose inhaler in the market next year. At present Mylan, Sandoz and Hikma are in the race to launch generic copies of Advair in the US.
The UK drug regulator approval for the inhaler is a positive for Cipla given the complexities involved in manufacturing. "This is a testament to Cipla's relentless efforts in the respiratory field for over a decade," Cipla Chief Executive Officer Umang Vohra said in a statement.
However, its contribution to sales will depend upon the extent of price erosion in the UK market and Cipla's ability to garner market share.
Next year, Glenmark will launch a copy of Advair's dry powder inhaler in Europe which has estimated the market size of $700 million.
