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Novartis' (NVS) NSCLC Drug Fails to Meet Primary Endpoint

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Novartis (NVS - Free Report) announced that its late-stage study on pipeline candidate canakinumab (ACZ885), an inhibitor of interleukin-1beta (IL-1β), in combination with the chemotherapy agent docetaxel was not successful.

The phase III CANOPY-2 study was conducted among 237 adults with locally advanced or metastatic non-small cell lung cancer (NSCLC) whose disease progressed while on or after previous platinum-based chemotherapy and PD-(L)1 inhibitor immunotherapy. The study did not meet its primary endpoint of overall survival (OS).

Nevertheless, two phase III CANOPY studies are ongoing, evaluating canakinumab in first-line and adjuvant settings. CANOPY-1, a phase III study, is evaluating canakinumab in combination with immunotherapy and chemotherapy (final results expected before the end of the year). Another phase III study, CANOPY-A, is evaluating canakinumab as an adjuvant therapy and has enrolled more than 950 patients to date and is expected to enroll a total of 1,500 patients.

We note that Novartis launched the CANOPY study program after observing significantly lower-than-expected rates of lung cancer mortality among patients in the phase III cardiovascular CANTOS trial. This study evaluated canakinumab as a secondary prevention measure for cardiovascular events in patients following a heart attack. These patients were also at high risk for inflammatory cancers, like lung cancer, due to advanced age, smoking history and other clinical risk factors. As a result, Novartis launched three, large-scale, randomized, phase III studies and a phase II study to evaluate canakinumab as a potential treatment option in NSCLC.  

Lung cancer is widely prevalent, accounting for more than 2 million new cases diagnosed each year. Among these, NSCLC is the most common type and accounts for approximately 85% of lung cancer diagnoses, resulting in nearly 1.7 million new cases each year.

Novartis’ Tafinlar + Mekinist is already approved for NSCLC and a potential approval of another candidate will strengthen this franchise. Tabrecta is also approved for NSCLC.

The stock has lost 11.4% in the year so far compared with the industry’s decline of 3.5%.

Competition is stiff in the NSCLC space from other targeted drug therapies and immunotherapies. Pfizer’s (PFE - Free Report) Xalkori is approved for NSCLC. Merck’s (MRK - Free Report) immuno-oncology drug, Keytruda, is also approved for NSCLC. Last year, Eli Lilly and Company (LLY - Free Report) obtained FDA approval for Cyramza in combination with Tarceva, for the first-line treatment of NSCLC patients with epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 (L858R) mutations.

Novartis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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