Those who suffer from runny noses and itchy eyes at this time of year will welcome news that GlaxoSmithKline, the world's second largest pharmaceutical company, has had its allergy nasal spray approved by the US Food and Drug Administration.
The company said the Veramyst spray — a potential blockbuster for treating hay fever — would be available on prescription in the US by the end of May, and should start selling in Europe by the end of the year.
Mike Ward, an analyst at Nomura Code Securities, said the spray's competitive advantage is that it helped relieve itchy and watery eyes as well as blocked and runny noses. He said he expected sales of $1.5bn (£750m) by 2011.
Veramyst works by blocking chemicals in the body that cause inflammation, and produce symptoms like runny noses and itchy eyes. GSK's clinical trials among more than 2,900 adults, showed Veramyst was effective for 24 hours.
Peter Cartwright, an analyst at Evolution Securities, said: "Veramyst should allow GSK to rebuild its previously dominant allergy franchise that has been under pressure following patent termination for Flonase." He said sales of Flonase exceeded $1bn (£500m) at its peak.
This is GSK's third significant product launch since the beginning of the year. Tykerb, the group's breast cancer drug, was launched last month, as was heart medicine Coreg CR, its once-a-day betablocker. The group has filed for approval for its cervical cancer vaccine Cervarix, and the FDA is expected to rule on its new migraine treatment Trexima during the summer.
Mr Cartwright said: "Five major launches this year should be instrumental in boosting investor confidence in GSK."
But shares only closed up 9p at £14.49 as investors waited for results of an FDA meeting on Tuesday on Advair, one of its top-selling drugs. The drug is already approved in the treatment of chronic obstructive pulmonary disease (COPD), or smoker's cough, associated with chronic bronchitis, in a certain dose. But GSK wants to get a higher dose approved for COPD.
A spokeswoman for GSK said this would push up sales of the drug, as the higher dose, known as Advair 500-50, involves a more expensive inhaler, and would reach more sufferers.
The company has attempted to prove that Advair 500-50 increases survival in patients but a large study failed narrowly to show that it worked. Analysts at Citigroup said the claim was unlikely to be recommended by the FDA.
