Brokerages raise Cipla’s target price post inhaler launch 

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The launch of Fluticasone/Salmeterol combination inhaler, a generic version of GSK’s Advair MDI (metered dose inhaler), by pharmaceutical major Cipla in Germany and Sweden is seen as a significant development by brokerages.

The launch establishes Cipla as the front runner in combination MDIs as no other generic company has received approval in this category so far. Cipla will be launching the drug in other European countries over the next 12-18 months.

“We believe this is a significant development for Cipla as it instills the confidence that time has come for the company to monetize its respiratory franchise in the developed markets. We expect launches in more lucrative markets such as the UK (US$432mn), France (US$64mn) and Spain (US$44mn) to follow over the next 12 months,” said a Bank of America Merrill Lynch report.

“Launch of generic Advair pMDI in Germany and Sweden is a significant positive. While the combined size of the markets is not material (US$60 mn), these approvals now set the stage for 4QFY15 approval in the UK, which represents the largest market for Advair pMDI in the EU,” said a Kotak Securities report.

 

Source: economictimes

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