GSK secure approval for Nucala asthma treatment

GlaxoSmithKline Plc (LON:GSK) have secured approval for a licence extension of their Nucala treatment for children with severe asthma.

The treatment was first received patent and distribution approval in 2015 and is the first method of pediatric care that directly combats the effects of interleukin-5 (IL-5), which regulates the function of eosinophils. In preliminary trials, a 100mg dose of the drug was shown to reduce clinically significant exacerbation of asthma by 53% versus the placebo, with overall reductions hitting 61%.

The new licence extension includes approval for use of the treatment on adult and pediatric patients in 31 European countries, covered by the European Medicines Agency.

“Asthma is the most common chronic disease in children. The availability of Nucala as the first targeted treatment available for young children with severe asthma, will help provide asthma control for these children and reassurance to their parents,” said Dr Hal Barron, Chief Scientific Officer and President, Pharmaceuticals R&D, GlaxoSmithKline.

The licence extension is positive news for the company who have seen a hike of 21% in shares since the year began, with their shares continuing to rally amidst the Sino-US tariff war only a few weeks ago.

Despite recent successes, Glaxo have shared the fate of their counterparts AstraZenica and seen a modest dip today, with shares trading at 1.583.8p, down 1.01% since trading began. Analysts from Liberum have also downgraded GlaxoSmithKline stock to a hold stance, stating that better value can be found elsewhere in the pharmaceutical market – though Glaxo is still an attractive long-term investment.

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.