FDA approval almost always makes for a good day in the shares of a biotech, and the announcement on Wednesday that the drug agency had given the thumbs up to Horizant should be no exception. Horizant, a drug for restless leg syndrome (RLS), was developed by Xenoport (Nasdaq:XNPT) and will be marketed in the U.S. by GlaxoSmithKline (NYSE:GSK). As is almost always the case, this will be a significant business development for the smaller biotech and a positive, but not transformative, piece of news for the larger pharma partner.
Can Glaxo Turn Horizant into the Next Requip?
Glaxo is clearly hoping that it can match the success of Requip, its prior branded drug for RLS. Requip was worth hundreds of millions of dollars in sales to Glaxo before the patents expired and generics from the likes of Teva (Nasdaq:TEVA) and Mylan (NYSE:MYL) entered the market.
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