France's Stallergenes has received U.S. regulatory approval to sell the first immunotherapy pill against grass allergies in the world's biggest pharmaceutical market, sending its shares up 6 percent on Wednesday.
Stallergenes has said it sees a potential U.S. market of nearly 3 million patients that will eventually be worth $1 billion in annual sales for these types of drugs.
"That's very positive news as the group is considerably expanding its market," Gilbert Dupont analysts wrote in a note.
Oralair is a fast-dissolving tablet to be placed under the tongue that contains extracts from five types of grass pollen: sweet vernal, orchard, perennial rye, timothy and Kentucky bluegrass. It harnesses the immune system to alleviate allergies and is an alternative to current treatments that need to be injected.
Merck and Danish partner ALK Abello are also expected to launch their rival therapy Grastek in the United States this year. In December, both drugs received strong recommendations from outside advisers to the U.S. Food and Drug Administration (FDA).
Oralair was approved in the European Union in 2008 and is also sold in Canada, Australia
for the treatment of grass pollen allergy. It generated revenue of 22.2 million euros ($30.5 million) in 2013, up 37 percent from 2012.
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