Heart drug launch could be 'most exciting ever', says Novartis

BARCELONA Sun Aug 31, 2014 12:49pm EDT

The logo of Swiss drugmaker Novartis is seen at its headquarters in Basel October 22, 2013.   REUTERS/Arnd Wiegmann

The logo of Swiss drugmaker Novartis is seen at its headquarters in Basel October 22, 2013.

Credit: Reuters/Arnd Wiegmann

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BARCELONA (Reuters) - The expected launch of Novartis's new heart failure drug next year promises to be the company's most exciting ever and profit margins on the medicine will be good, its head of pharmaceuticals said on Sunday.

The Swiss drugmaker impressed doctors at the European Society of Cardiology meeting in Barcelona at the weekend by unveiling strikingly good clinical trial results for the drug, known as LCZ696, in a keenly awaited clinical trial.

Investigators working on the study and the company itself believe it has potential to replace drugs that have been central to treating heart failure for a quarter of century, opening up a multibillion-dollar sales opportunity.

"It will be possibly the most exciting launch the company has ever had," David Epstein told an investor meeting.

The profitability of the drug would also be higher than Novartis achieved when its blockbuster hypertension medicine Diovan was still patent-protected, since the cost of marketing LCZ696 will be lower. That reflects the more specialized nature of heart failure, which requires a smaller sales force.

As a result, LCZ696 should become profitable relatively quickly, though Novartis will be investing to ensure a strong launch. Epstein said he did not expect any increase in the overall sales force because staff would be switched from promoting some older drugs.

In a research note issued by investment bank Leerink on the back of the strong trial results, analyst Seamus Fernandez said that LCZ696 could rack up annual sales of $6-8 billion, with further upside in emerging markets and from new indications.

The study unveiled in Barcelona targeted heart patients with reduced ejection fraction, where the heart muscle does not contract effectively. However, Novartis is also starting a trial in a similar-sized group with preserved ejection fraction, where the ventricles do not relax as they should.

(Reporting by Ben Hirschler; Editing by David Goodman)

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Comments (4)
KyleMorgan wrote:

So everyone is excited because it’s going to make a lot of money for Novartis and their shareholders, and not because it will save more lives or anything.

I find this story very disappointing since the author never once thought to clearly state the drug’s purpose, other than to mention that it will replace other drugs that do the same thing. If I were an English teacher and this was written by one of my pupils, I would reject it.

Come on Reuters. You used to have higher standards for your stories.

Aug 31, 2014 1:29pm EDT  --  Report as abuse
SoutherRican wrote:
I doubt that they really care about the patients, “company’s most exciting ever and profit margins”; says it all. They are not doing it as if they are humanitarians. Bet if they found a drug that would cure all heart problems, they would not put it out, it would cut profits in the long run.

Aug 31, 2014 1:31pm EDT  --  Report as abuse
KyleMorgan wrote:
I realized there WAS one sentence at the end of the article that says what the drug does. However, it’s still disappointing that it’s exciting because of the money to be made, and not exciting because it will drastically improve health, and that all but one sentence of the article was focused on money, Money, MONEY!

Aug 31, 2014 1:39pm EDT  --  Report as abuse
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