Novartis set for ‘unprecedented’ wave of launches
pharmafile | February 9, 2007 | News story | Sales and Marketing |Â Â Â
Novartis is preparing to set a new record for the pharmaceutical industry by launching eight products in the next 12 months.
The company had a very successful 2006, and has just announced double-digit growth in sales (15%) and profits (18%), but despite its continued growth, it has not overtaken rivals, such as Sanofi-Aventis, GSK and Pfizer, in the industry rankings.
Chief executive Daniel Vasella forecast the company would post strong single-digit sales growth in 2007, but the eight product launches will significantly add to its expenditure over the coming year.
Head of the pharma division Thomas Ebeling said eight launches in one year depending on regulatory clearance would be unprecedented, the current record being five launches made by Pfizer.
The eight products span a range of therapy areas, from cardiovascular medicine to hepatitis B and will stretch the company's resources as it aims to maximise sales as quickly as possible.
Three of the drugs – Exforge (combining Diovan with amlodipine), Tektura, a first-in-class hypertension drug and Galvus, a new diabetes treatment – will be mass-marketed to GPs, and will require Novartis to take on more sales reps.
The increase in Novartis' salesforce comes at a time when other companies are considering scaling back their rep numbers, but Novartis has indicated it would not be unduly swayed by cutbacks elsewhere.
Speaking ahead of Pfizer's announcement of a 20% reduction in its European salesforce, Ebeling said: "We calculate our need for fieldforces on the sector we are currently in.
"If competitors decided to reduce their field forces, then we would reflect on that, but we would not automatically conclude that we need to reduce as well."
Pharma sales rose 15 % to $6 billion in 2006, with Diovan, Glivec and Lotrel all enjoying double-digit growth.
US sales rose 17% as several products benefited from new clinical data, DTC promotion and strong positions in government formularies. Growth in Russia and Turkey supported the performance in Europe, where net sales rose 18% and helped compensate for weaker performances in France and Germany. Latin America saw sales rise 16%, with the success of new product Prexige in Brazil and Mexico leading the way.
Indian patent battle
It was not all good news from the emerging markets, however. The company has come into conflict with the governments of Brazil and India over intellectual property rights. In India, Novartis is mounting a legal challenge to the government's refusal to grant a patent on Glivec.
The case has significance, not just because India is one of pharma's fastest growing markets, but because the country is also home to some of the world's biggest producers of generics.
If Novartis succeeds in its challenge, India's early production of generics could be halted. Campaigners for access to medicines have condemned the company for the challenge, but Novartis denies it is trying to block emergency access to essential medicines, such as HIV treatment.
Finally, the question of possible mergers and acquisitions for the company was once again a topic of interest for the analysts and reporters.
Daniel Vasella told journalists at the company's annual result conference he would not rule out a merger if a good deal appeared, but otherwise said the company would concentrate on organic growth.
Roche stake
Novartis hold just under a 30% share in Swiss neighbours Roche, just short of the level that would trigger a mandatory takeover offer.
Vasellla has made clear his desire to create a supersized Swiss pharma company, but the Hoffman family, which holds a controlling share in Roche would almost certainly block a merger.
Responding to questions about the stake, Novartis' chief financial officer Raymund Breu said the upturn in Roche's share price since 2001 made the shares a good buy.
"We bought it for $2.8 billion and it is now worth in excess of $10 billion. It's a very good investment and we have every intention of keeping it for the long-term," said Breu.
Exforge
A hypertension pill combining Novartis' top-seller Diovan with amlodopine.
Tekturna
The first blood pressure drug with a new mechanism in 10 years. It is expected to be approved by FDA in 2007/8 despite some concerns about side-effects seen in animals.
Galvus
A breakthrough therapy for type II diabetes, although delays mean Merck's rival product Januvia has reached the market first.
Aclasta
A new treatment for osteoporosis, which Novartis claims is more effective and convenient than existing treatments
Exelon Patch
The company's Alzheimer's drug re-formulated.
Tasigna
A treatment for patients with chronic myeloid leukaemia who are resistant to Glivec.
Lucentis
A new biological product for AMD, a leading cause of blindness in the developed world.
Sebiva
A new hepatitis B drug with a favourable safety/convenience profile.
N.B. Pfizer is the current record holder, having launched five products in 1998. The products concerned were Viracept, Rezulin, Lipitor, Detruisitol and Aricept.
