Generic pressure curbs Novartis growth
pharmafile | July 17, 2007 | News story | Sales and Marketing |Â Â Â
Swiss pharma company Novartis has posted sales growth of 14% for the first half of 2007, but growing pressure from generic competition has forced it to lower its expectations for the full year.
Generic competitors in the US are expected to seize the market share from Lotrel and Lamisil, while the market suspension of Zelnorm in the number one market will also hit revenues.
The company says sales growth will be around the 5% mark for 2007, down from the high single-digit figures predicted earlier this year.
Despite the more modest expectations for sales, the company has enjoyed a strong start to the year, with six new approvals/launches during the period and continuing growth for its leading brands.
Novartis has launched its new high blood pressure drug, Tekturna (aliskiren), in the US with a launch in Europe expected shortly, where the drug will be known as Rasilez.
Meanwhile Exforge, a combination of Diovan and amlodipinehas been launched in Europe and the US, where it hit the market three months ahead of schedule.
Others approved and launched in the first half were Aclasta/Reclast in the US for Paget's disease, blindness treatment Lucentis in Europe and Sebivo in Europe and China for hepatitis B.
Finally, Exelon Patch won US approval in July as the first skin patch therapy for Alzheimer's disease and Parkinson's disease dementia.
Two other drugs are awaiting approval from the regulators – Galvus, a novel treatment for type II diabetes and Tasigna, a treatment for chronic myeloid leukaemia.
Meanwhile, the company's flagship brand, Diovan, has became the world's number one selling blood pressure drug, gaining 19% in sales over the period and overtaking Pfizer's Norvasc/Istin.
In oncology, targeted leukaemia treatment Glivec continued its run of strong growth in sales, up 14 per cent.
Despite its buoyant sales, Novartis' chief executive Daniel Vasella remains keen to make targeted acquisitions, although a mega-merger with another large pharma company seems less likely than the purchase of a medium-sized specialist company.
Any such deals could be financed from the ongoing sales of divisions the company considers to be non-core businesses. These include its medical nutrition division, which it has sold to Nestle for $2.5 billion, and its Gerber baby foods business, which Nestle will also buy for $5.5 billion later this year.
