Theravance Inc (THRX), Novartis AG (ADR) (NVS): Respiratory Drug Maker About to Take Off

They are coming up with their own LABA/LAMA COPD drug i.e. QVA149. Novartis AG (ADR) (NYSE:NVS) submitted QVA149 for approval in Japan and Europe in October last year. Filling for FDA approval in the U.S. is expected in 2014, mainly due the delays from some dosing issues. Just like Anoro, on the basis of clinical studies, QVA149 proved to be more effective at preventing COPD than the well-known drug Spiriva from Pfizer Inc. (NYSE:PFE). Analysts believe that the drug might not perform as well as Anoro in the U.S. because Anoro will have first mover advantage. Still, projections are that it might be able to get hold of around $700 million annually.

With both these companies bringing new drugs to the COPD market Boehringer Ingelheim and Pfizer Inc. (NYSE:PFE) have become concerned about the success of  Spiriva. That is why Boehringer has received a green light from an FDA advisory committee for the use of Olodaterol alongside Spiriva. Olodaterol is a LABA, and Spiriva is a LAMA. Boehringer Ingelheim thinks that the final approval for olodaterol might balance the scales against  Theravance Inc (NASDAQ:THRX)/Glaxo and Novartis AG (ADR) (NYSE:NVS). But taking two drugs instead of one would be a disadvantage for Pfizer Inc. (NYSE:PFE) and Boehringer so they will have to do something about it in the long run or else Spiriva would not be able to generate revenues.

Final assessment

Theravance Inc (NASDAQ:THRX) seems to be the company which is leading the way to combined LABA/LAMA COPD drugs. That is why its drug Anoro should be the first one to get FDA approval and might generate more revenue than other drugs in this market. Novartis AG (ADR) (NYSE:NVS)’s QVA149 is also expected to be in the market by 2013. These advancements would be greatly welcomed by COPD patients and these companies’ investors alike.

The article Respiratory Drug Maker About to Take Off originally appeared on Fool.com and is written by usman iftikhar.

usman iftikhar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. usman is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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