Biotech asthma drugs potentially multibillion-dollar industry

Injectable biotech asthma drugs are potentially a multi-billion dollar industry ($7.5 billion to be exact), a fact that has rivals racing to be the first to develop them.

Britain's GlaxoSmithKline, the leader in asthma treatments since launching its Ventolin inhaler in 1969, Roche, AstraZeneca, Sanofi and Teva are the contenders vying for that first place finish.

The new injectable medicines have led to a 40 to 60 percent decrease in serious asthma attacks, or exacerbations.

"I'm very optimistic about the new drugs," Elisabeth Bel, president-elect of the European Respiratory Society and head of respiratory medicine at the Academic Medical Center in Amsterdam, told Reuters.

"We have participated in several trials with the new biological agents and have seen some amazing results."

About 2 million people suffer from asthma, according to consultancy Decision Resources. Up to 20 percent of patients still cannot get their asthma under control, and some don't respond well to standard treatments, like inhalers. These standard therapies consist of inhaled steroids and long-acting beta agonists designed to open up airways.

To determine which patients will respond to the treatment, users undergo a "biomarker" blood test to make the treatment more personalized.

"Severe asthma patients represent the majority of the (asthma) burden on healthcare systems and budgets," said Bahija Jallal, head of AstraZeneca's MedImmune biotech unit.

"We will be working to convince payers this is something that brings value."

But if this novel approach can create a drug that causes a drop in the number of asthma-related hospitalizations, analysts worry that it could drive up the price of the product.

Barclays analysts, for example, think GSK's new drug, mepolizumab, which will be submitted for regulatory approval later this year, will cost $15,000.

Seamus Fernandez of Leerink expects a slightly less expensive price of $10,000 due to the competition to create the first biotech asthma drug.

Xolair, from Novartis and Roche, is the only biotech asthma drug currently being sold, but takes a different approach and is meant only for patients with allergic asthma.