Novartis discontinues development of two investigational compounds reflecting enhanced focus on portfolio prioritization and productivity
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Novartis International AG /
Novartis discontinues development of two investigational compounds reflecting
enhanced focus on portfolio prioritization and productivity
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* Human Genome Sciences and Novartis to stop further development of
albinterferon alfa-2b, an investigational compound for the treatment of
adults with chronic hepatitis C
* Novartis to discontinue development of Mycograb (efungumab), an antifungal
agent being assessed for the treatment of invasive candidiasis in adult
patients
* Related impairment and other charges of approximately USD 590 million to be
taken in third quarter of 2010; expected to be partially offset by gain on
divestment of Enablex(®) of approximately USD 390 million to be recognized
in fourth quarter 2010
* Strategic focus remains on differentiated products and agents most likely to
address unmet patient need
Basel, October 5, 2010 - Novartis announced today that it discontinued the
development of two investigational compounds in its pharmaceutical pipeline,
reflecting enhanced focus on differentiated medicines most likely to address
unmet medical needs.
Novartis and Human Genome Sciences decided to stop further global development of
the investigational compound albinterferon alfa-2b* for the treatment of adults
with chronic hepatitis C. The decision was based on feedback from EU and US
regulatory authorities as well as on new data from a phase II study conducted
with the monthly dosing of albinterferon. An intangible asset impairment charge
of approximately USD 230 million will be taken in the third quarter of 2010 in
the Novartis Pharmaceuticals division.
Novartis further decided to stop clinical development of Mycograb (efungumab),
an antifungal agent being assessed as an add-on therapy to treat invasive
candidiasis in adult patients. Following this decision, an intangible asset
impairment and other related charges of approximately USD 360 million will be
taken in the third quarter of 2010 in the Novartis Pharmaceuticals Division.
The impairment charges are expected to be partially offset through the proceeds
received from the sale of the US rights for Enablex(® )(darifenacin) to Warner
Chilcott for USD 400 million, as announced on September 24, 2010. A gain of
approximately USD 390 million will be recorded in the fourth quarter of 2010.
Disclaimer
The foregoing release contains forward-looking statements that can be identified
by terminology such as "expected," "to be recognized," "will," or similar
expressions, or by express or implied discussions regarding potential future
sales or earnings or financial results of the Novartis Group or any of its
divisions. You should not place undue reliance on these statements. Such
forward-looking statements reflect the current views of management regarding
future events, and involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different from any future
results, performance or achievements expressed or implied by such statements.
There can be no guarantee that the Novartis Group, or any of its divisions, will
achieve any particular financial results. In particular, management's
expectations could be affected by, among other things, unexpected regulatory
actions or delays or government regulation generally; unexpected clinical trial
results, including unexpected new clinical data and unexpected additional
analysis of existing clinical data; the company's ability to obtain or maintain
patent or other proprietary intellectual property protection; competition in
general; government, industry and general public pricing pressures;
uncertainties regarding actual or potential legal proceedings, including, among
others, product liability litigation, litigation regarding sales and marketing
practices, government investigations and intellectual property disputes;
uncertainties regarding the ongoing government debt crisis and the after-effects
of the recent global financial and economic crisis; uncertainties regarding
future global exchange rates and uncertainties regarding future demand for our
products; uncertainties involved in the development of new pharmaceutical
products; the impact that the foregoing factors could have on the values
attributed to the Novartis Group's assets and liabilities as recorded in the
Group's consolidated balance sheet, and other risks and factors referred to in
Novartis AG's current Form 20-F on file with the US Securities and Exchange
Commission. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, believed, estimated or expected. Novartis is
providing the information in this press release as of this date and does not
undertake any obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or otherwise.
About Novartis
Novartis provides healthcare solutions that address the evolving needs of
patients and societies. Focused solely on healthcare, Novartis offers a
diversified portfolio to best meet these needs: innovative medicines, cost-
saving generic pharmaceuticals, preventive vaccines, diagnostic tools and
consumer health products. Novartis is the only company with leading positions in
these areas. In 2009, the Group's continuing operations achieved net sales of
USD 44.3 billion, while approximately USD 7.5 billion was invested in R&D
activities throughout the Group. Headquartered in Basel, Switzerland, Novartis
Group companies employ approximately 102,000 full-time-equivalent associates and
operate in more than 140 countries around the world. For more information,
please visithttp://www.novartis.com.
*Albinterferon 2b is also known with the brand names Joulferon(®) in Europe and
Zalbin(TM) in US
# # #
Novartis Media Relations
Central media line: +41 61 324 2200
Eric Althoff Irina Ferluga
Novartis Global Media Relations Novartis Pharma Communications
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Central phone: +41 61 324 7944
Susanne Schaffert +41 61 324 3769 North America:
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Thomas Hungerbuehler +41 61 324 8425 Jill Pozarek +1 212 830 2445
Isabella Zinck +41 61 324 7188 Edwin Valeriano +1 212 830 2456
e-mail: investor.relations(at)novartis.com e-mail:
investor.relations(at)novartis.com
[HUG#1449020]
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Novartis International AG
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Datum: 05.10.2010 - 07:00 Uhr
Sprache: Deutsch
News-ID 44106
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