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OPINION

Chart: Breath of life for respiratory market

Chart: Breath of life for respiratory market
February 5, 2016
Chart: Breath of life for respiratory market

Whilst GSK's share price hasn't reflected the success of new drug sales lately, looking at the trajectory of shares in companies like Skyepharma (SKP) and Vectura (VEC) - both of which license the development and distribution of respiratory products out to big pharma companies including GSK - makes for interesting reading. The performance of these shares has been particularly encouraging against the FTSE All-Share index, which has remained pretty much flat by comparison.

 

Relative share price performances

 

Analysts at N+1 Singer believe this year could be another important one for respiratory products and their developers. In the field of chronic pulmonary obstructive disorder (COPD), there's increasing demand for what's known as 'combination' and 'triple' therapies, which are considered more effective. This could benefit Skyepharma and Vectura as both companies are eligible to earn royalties on three major inhaled GSK products, including Anoro. Vectura is also eligible for royalties relating to a triple therapy product currently in development by Swiss group Novartis (CH:NOVN).