Mylan said on Wednesday that will U.S. health regulators were unable to approve its generic type of GlaxoSmithKline’s blockbuster inhaled lung drug Advair for the second time, as they found “minor deficiencies” inside the treatment.
Shares of Mylan fell 4.5 percent to $39.80 after the bell.
Mylan did not provide details on the nature of the deficiencies cited by the U.S. Food along with Drug Administration along with the item remains unclear whether the company will be able to resolve them along with get approval that will year.
The FDA has declined to approve several Advair knock-offs inside the past via drugmakers including Novartis Hikma Pharmaceuticals, along with Mylan itself, whose generic was rejected last year.
“I don’t think that will comes as a big surprise … people realize these are all very difficult-to-make products along with they’re going to go through a couple of rounds at the FDA,” Leerink analyst Ami Fadia told Reuters.
“They (Mylan) will actually still be at least one year ahead of competition if they got approval that will year.”
The news bodes well for GSK, which has dominated the lung drug market for decades along with was bracing for competition by mid-2018.
Even as the British drugmaker puts more marketing muscle on its newer lung drugs, GSK reported revenue of 3,130 million pounds ($4.19 billion) via Advair last year.
Mylan said the item expects to receive a formal complete response letter, typically issued to outline concerns along with conditions that will must be addressed to gain U.S. approval, via the FDA on June 27 along with would certainly determine what impact, if any, the item would certainly have on its full-year forecast.