GSK’s decision allowed the company to avoid an estimated $367.6 million in payments to Medicaid; instead, Medicaid spent more than $550 million on the authorized generic in 2024
WASHINGTON – One year after GlaxoSmithKline (GSK) pulled the Flovent HFA inhaler from the market, U.S. Senator Maggie Hassan (D-NH), Ranking Member of the Senate Finance Subcommittee on Health Care, is continuing her oversight of the company by launching an investigation into its decision to discontinue the inhaler – which had been the most prescribed controller inhaler for young children with asthma.
After its discontinuation, GSK worked with a different company, Prasco Laboratories, to distribute the same inhaler under a different name – which not only created a greater expense for many patients, but also allowed GSK to avoid an estimated $367.6 million in rebates to Medicaid in 2024 alone. With fewer and more expensive inhaler options available in the year following the discontinuation of Flovent HFA, children across the country faced life-threatening medical challenges, with reports noting significant increases in asthma-related hospitalizations and ICU admissions.
“As families continue to battle sky-high prescription drug costs, we must not only lower costs, but also ensure that companies cannot abuse the system to enrich their profit margins and rip off taxpayers,” said Senator Hassan. “One year later, GSK’s decision to discontinue the most prescribed inhaler for young children with asthma and allow a different company to sell the same product in a more expensive form has threatened the lives of children in New Hampshire and across the country. GSK has a responsibility to answer for its actions, and we need to ensure that other companies can’t follow their lead in evading Medicaid payments. As I launch this investigation, I also continue to urge GSK to restore Flovent HFA to the market and work with Prasco to lower the price of the inhaler available today so that individuals suffering from asthma can access this life-saving treatment.”
Senator Hassan’s new investigation into GSK and Prasco follows her May 2024 push to get GSK to restore Flovent HFA and explain why it decided to discontinue Flovent HFA while leaving other brand-name inhaler products on the market and capping their prices. As Senator Hassan writes today, GSK’s response “failed to offer a convincing explanation for why it decided to discontinue Flovent HFA while leaving other brand-name inhaler products on the market and capping their prices.” Since discontinuing Flovent HFA, GSK and Prasco have not offered the same discounts and rebates for the authorized generic, leading major insurers and pharmacy benefit managers (PBMs) to delay or deny coverage of the authorized generic.
In addition to adverse outcomes for patients, GSK’s decision to discontinue Flovent HFA has resulted in significant economic consequences, as outlined in Senator Hassan’s request to GSK:
Click to read Senator Hassan’s letters to GSK and to Prasco Laboratories.
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