PAR BEGINS SHIPPING AUTHORIZED GENERIC FLONASE

Par Pharmaceutical has entered a U.S. supply and distribution agreement with GlaxoSmithKline (GSK) to distribute an authorized generic version of GSK's allergy nasal spray Flonase.

The recent announcement comes one day after the FDA announced it had approved the first true generic version of the drug, manufactured by Roxane Laboratories.

Under the agreement, Par may commence shipment of its fully substitutable generic Flonase (fluticasone propionate) once another fully substitutable generic version of the drug becomes available in the U.S. Par's product will be manufactured by a GSK subsidiary and GSK will receive a share of Par's profits, the company said.

The product garnered roughly $900 million annually. One industry analyst noted that other generics have not been approved yet, suggesting less competition and price discounting than in most generic categories. "It is unclear when other generics might receive final approval given challenges in demonstrating bioequivalence of generic Flonase," said David Risinger, with Merrill Lynch.