Hikma rallies as it launches generic version of Glaxo asthma treatment

Hikma Pharmaceuticals shares rallied after the company said it had received approval from the US Food and Drug Administration and launched its generic version of GlaxoSmithKline’s asthma treatment, Advair Diskus.

Hikma worked with UK-based Vectura, a provider of innovative inhaler drug delivery solutions, to develop the proprietary dry powder inhaler and formulation technology.

Chief executive officer Siggi Olafsson said: "The approval of our generic version of Advair Diskus marks an important milestone in our strategy to develop more complex respiratory products. Through the unwavering dedication of our employees and close collaboration with the Vectura team, we have developed a high quality and substitutable generic product for Advair Diskus that will improve availability of this critical medicine.

"We are very pleased to have now launched this product and will leverage the investments we have made and the experience we have gained through this process to develop a range of respiratory and other complex treatment options for patients and healthcare providers, helping us to continue to put better health, within reach, every day."

At 0815 GMT, Hikma shares were up 4.5% at 2,577p, while Vectura shares were 7.1% higher at 123.40p.

Vectura will receive a milestone payment of $11m which will be recognised in 2020, and will earn a mid-teen royalty on net sales of the product.