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GSK Follows Rivals, to Cap Out-of-Pocket Inhaler Cost in US

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GSK plc (GSK - Free Report) announced plans to cap out-of-pocket expenses for its inhaled respiratory portfolio in the United States at $35 per month, following a similar move by rivals AstraZeneca (AZN - Free Report) and Boehringer Ingelheim earlier this month.

This cap would apply to all of GSK’s asthma and chronic obstructive pulmonary disease (COPD) inhalers, which include Advair Diskus, Advair HFA, Anoro Ellipta, Breo Ellipta and Trelegy Ellipta.

However, GSK plans to start this in 2025. The British drugmaker is one of the biggest sellers of inhalers in the United States.

Shares of GSK have gained 13.1% year to date against the industry’s 1.9% fall.

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Earlier this week, AstraZeneca stated it would cap out-of-pocket expenses for all its inhaler products at $35 per month beginning in June 2024. One of the biggest manufacturers of inhalers in the United States, AstraZeneca’s inhaled respiratory portfolio includes Airsupra, Bevespi Aerosphere, Breztri Aerosphere and Symbicort.

We remind investors that the privately-held Boehringer Ingelheim was the first to cap out-of-pocket expenses for all its inhaler products at $35 per month, also beginning in June. Boehringer’s inhaled respiratory portfolio includes Atrovent, Combivent, Spiriva, Stiolto and Striverdi.

AstraZeneca, Boehringer and GSK’s aggressive price cuts come amid pressure to cut costs of asthma inhalers to make them affordable for American citizens.

In January, Senator Bernie Sanders and several members of the HELP committee called out on the four largest inhaler manufacturers in the country, namely AstraZeneca, Boehringer Ingelheim, GSK and Teva Pharmaceuticals (TEVA - Free Report) , over high prices. Lawmakers launched a major investigation into the prices at which inhalers for asthma and COPD were sold in the United States compared with other countries.

Per the committee, the top four inhaler-makers charge between $200 and $600 each for inhaler products that are typically purchased monthly.

Teva has yet to make any official announcement about reducing the prices of their inhalers. The committee has accused Teva of charging $286 for QVAR Redihaler in the country when the same inhaler is available for just $9 in Germany.

 

Zacks Rank & Key Picks

GSK currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is ADMA Biologics (ADMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 22 cents to 30 cents. During the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have risen 39.8%.

Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.

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