Novartis Presents Positive Data

Novartis (NVS - Snapshot Report) recently presented the initial data from a phase III trial of one of its pipeline candidates, ranibizumab. The drug is being studied to evaluate its efficiency compared to the standard therapy of laser treatment in patients with visual impairment due to diabetic macular edema (DME). 

The results were presented at the meeting of the European Association for the Study of Diabetic Eye Complications (EASDec) in Paris. 

It was observed that patients treated with ranibizumab alone (37%) or in combination with laser therapy (43%) witnessed significant vision improvement (10 letters) compared to 16% of patients treated with laser therapy. The safety profile of ranibizumab was also found to be favorable. 

Ranibizumab, co-developed with Genentech, a part of Roche (RHHBY), is approved in more than 80 countries under the brand name Lucentis to treat wet age-related macular degeneration (AMD). While Genentech has the commercial rights to the drug in the US, Novartis has rights for the rest of the world. 

Ranibizumab is yet to receive approval for visual impairment resulting from DME in any market. Novartis submitted a marketing authorization application for the drug in the EU in December 2009. 

Novartis is aiming big in eye care segment – in January 2010, the company announced its intention to acquire full ownership of Alcon (ACL) which is the global leader in this segment. Approximately 52% of the outstanding common shares of Alcon were held by Swiss corporation, Nestlé (NSRGY), which was sold to Novartis. Novartis will first complete its April 2008 agreement with Nestlé whereby it will acquire a majority stake (77%) in Alcon for $28.1 billion. This deal is slated to close in the second half of the year. 

Novartis has a deep pipeline and many of its products have huge potential. The company has received many significant approvals in the recent past which boosted its top line during the first quarter. 

Contributions from recently launched products increased 68% to $1.9 billion in the first quarter, representing 16% of net sales compared to 12% in the year-ago period. Moreover, in Pharmaceuticals, recently launched products, with net sales of $1.5 billion during the first quarter represented 20% of the division's net sales, up from 14% in the first quarter of 2009.

Read the full analyst report on NVS

Read the full analyst report on RHHBY

Read the full analyst report on ACL

Read the full analyst report on NSRGY