Morning Briefing
Summaries of health policy coverage from major news organizations
Novartis Profits Fall With Competition From Generic Cancer Drug
The Associated Press: Novartis Profits Dip As Generic Rival Challenges Cancer Drug
Swiss pharmaceuticals maker Novartis says net income from continued operations fell 13 percent in the first quarter as generic competition cut into sales of Gleevec, one of the first very effective cancer medicines. The Basel-based company said Thursday that net income from continuing operations declined to $2.01 billion from $2.31 billion a year earlier. Sales dipped 3 percent to $11.6 billion. (4/21)
The Wall Street Journal: Novartis Earnings Fall On Slide In Cancer-Drug Sales
Novartis is leaning heavily on new drugs to offset declining revenue from Gleevec, which fell 22% to $834 million, now that a cheaper generic version of the medicine is available. The company said it increased spending on marketing and sales by 1.1 percentage point to 23.6% of sales to promote its newer drugs. It said revenue from those so-called growth products increased 24% in the quarter to $3.9 billion. Still, sales of one of Novartis’ most important drug launches, Entresto for heart failure, were still “modest” in the first quarter, at $17 million. The drug has so far proved a disappointment, as a result of doctors’ hesitation to switch stable patients onto a new medicine and delays in securing reimbursement from cost-conscious health insurers in the U.S. (Roland, 4/21)
The Wall Street Journal: Glaxo Investors Want CEO Who Can Revitalize R&D
As GlaxoSmithKline PLC’s search for a new boss gets under way, one requirement ranks high on investors’ wish lists: someone who can breathe new life into its drug-development machine. The company’s pharmaceuticals arm, which develops prescription medicines and accounts for around two-thirds of its £23.9 billion ($34 billion) annual revenue, has lagged behind many of its peers in recent years, according to investors. Glaxo has notched a total shareholder return of 60% over the past five years, compared with 107% for the S&P Global 1200 Health Care Index. For many, fixing this is seen as the top priority for the successor to Chief Executive Andrew Witty, who recently announced plans to retire next March. (Roland and Lublin, 4/21)
The Associated Press: Breakthrough Cholesterol Drugs Fizzle Amid Price Pushback
When a powerful pair of cholesterol-lowering drugs first hit the market last summer, initial excitement in the medical community quickly turned to panic. The new drugs promised to reduce artery-clogging cholesterol by nearly twice as much as older ones. But they came at an eye-popping price: more than $14,000 per year, compared with roughly $150 for the standard drugs. Some experts predicted a doomsday scenario in which the two injectable drugs, Repatha and Praluent, would add a staggering $100 billion to the U.S. drug bill as doctors signed up millions of patients with elevated cholesterol. But then something unexpected happened: not much. (4/20)
