GSK Rebranded Flovent Asthma Inahler For Children To Avoid $367 Million Medicaid Rebate, Senator Hassan Accuses

U.S. Senator Maggie Hassan (D-NH) is intensifying her scrutiny of GSK Plc GSK over the company's decision to pull its widely used asthma inhaler, Flovent HFA, from the market.

One year after the discontinuation, Hassan launched a formal investigation into the move, raising alarms about patient access, skyrocketing costs, and the financial burden placed on Medicaid.

Flovent HFA had long been the most prescribed controller inhaler for young children with asthma. After it was removed from the market in January 2024, GSK partnered with Prasco Laboratories to distribute an authorized generic version.

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This rebranded product has been significantly more expensive for patients, allowing GSK to avoid an estimated $367.6 million in Medicaid rebates in 2024 alone. Instead, Medicaid spent over $550 million on the authorized generic in 2024.

In a letter to the CEO, Emma Walmsley, Senator Hassan criticized the maneuver as a corporate strategy that prioritized profits over patients, stating that it threatened the lives of children and placed undue financial strain on families. "GSK's decision to allow a different company to sell the same product in a more expensive form has endangered children and fleeced taxpayers," she said.

Hassan urged GSK to restore the original Flovent HFA and work with Prasco to reduce the cost of the generic version.

In her May 2024 letter, Hassan questioned why GSK discontinued Flovent HFA while keeping other brand-name inhalers on the market and capping their prices. GSK's response did not clarify this; instead, it shifted responsibility to Prasco for pricing decisions and formulary negotiations.

While GSK claimed the generic was priced 35% lower than branded Flovent, previous rebates on the original product had made it significantly more affordable. The absence of such rebates for the generic has led many insurers and pharmacy benefit managers to delay or deny coverage.

The consequences have been severe. Pediatric providers reported that Flovent HFA was the only inhaler compatible with spacer devices for infants and young children.

Its removal has limited treatment options, especially for patients with eosinophilic esophagitis or those who cannot tolerate alternatives. Meanwhile, other substitute inhalers, like Asmanex HFA and Alvesco, have faced shortages or limited insurance coverage throughout 2024.

A study published in October 2024 revealed a 17.5% increase in asthma-related hospitalizations in the three months after Flovent's removal, followed by a 24.1% increase over the next three to six months compared to previous years. ICU admissions showed similar spikes.

Beyond health outcomes, the financial impact has been substantial. A Johns Hopkins analysis found that Medicaid spent an estimated $551.8 million on the authorized generic in 2024 — nearly double what it might have spent under the original rebate structure. Even insured patients reported paying up to $150 per inhaler.

Senator Hassan's investigation aims to hold GSK accountable and prevent similar corporate tactics that bypass rebate obligations at the expense of public health.

Price Action: GSK stock is trading lower by 0.03% to $38.54 at the last check Friday

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