What You Need To Know About Novartis' Most Important Drugs

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    23-Aug-2014
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Novartis' (NYSE: NVS) is one of the planet's top drug manufacturers and its 3% dividend yield makes it a staple in dividend investor portfolios. However, Novartis' is facing significant threats from competitors Biogen Idec (NASDAQ: BIIB) and Regeneron (NASDAQ: REGN) which could crimp sales even as generic competition heats up for Novartis' multi-billion blockbuster drug Diovan. In the following slideshow, you'll learn more about Novartis' most important drugs and the threats and opportunities the lie ahead for them.

Transcript of What You Need To Know About Novartis' Most Important Drugs

  • What You Need To Know About Novartis Top Selling Drugs
  • Novartis Q2 revenue Second quarter sales totaled $14.6 billion, up 2%. Emerging markets grew 8%. Pharmaceuticals sales up 1% to $8.2 billion. Alcon (eye care) sales up 4% to $2.8 billion. Sandoz (generics) sales up 4% to $2.3 billion. Consumer health sales up 5% to $1.05 billion. Vaccines sales down 14% to $240 million. Novartis revenue is growing slowly.
  • Pharmaceuticals = most important Pharmaceutical product sales account for 56% of Novartis sales. 3 blockbusters are grew more than 20% year-over-year in Q2.
  • Lucentis Lucentis sales improved 7% to $619 million in Q2. Novartis owns ex-U.S. rights. Ex-U.S. market opportunity totals $6 billion annually by 2018. Market share stabilizing in wet- AMD versus Regeneron & Sanofis Eylea. First quarter 2014 Eylea global net sales increased 54% to $577 million. Emerging markets growing more quickly than developed markets.
  • Gilenya Gilenya sales improved 28% to $606 million in Q2. Ex-U.S. No. 1 market share for oral MS treatment. Biogens Tecfidera launches this year and threatens share. Biogens Tecfidera approved in March 2013. Tecfidera has already displaced Gilenya as the No. 1 oral MS drug in the U.S. with $460 million in Q1 U.S. sales.
  • Afinitor Afinitor sales improved 25% to $384 million in Q2. Breast cancer approval helps drive sales growth. 5 potential label expansions by 2017. HER2 breast cancer: 1st line. HER2 breast cancer: 2nd/3rd line. Potential peak sales of $2 billion+.
  • Diovan headwind grows Rough waters for its blockbuster Diovan. Sales fell 20% YoY in 2013 after losing patent protection. Sales still totaled $3.5 billion in 2013. Q2 sales weaker on U.S. inventory de-stocking ahead of generic launch. Ranbaxy won FDA approval of its generic Diovan in June. More risk coming.
  • Zometa headwind continues Zometa sales have fallen even more quickly. Zometa sales down 53% to $600 million in 2013. Sales fell 53% to $76 million in Q2. Sales are down 63% to $150 million in 1H2014.
  • Pipeline opportunity Zykadia won FDA approval in April for ALK+ non-small cell lung cancer. Small patient population. 2nd line use behind Pfizers Xalkori. Xalkori sales of $350 million in 2013. LBH589 filed for FDA approval in Q2 for multiple myeloma. Outperformed Velcade in phase 3. LDE225 filed for EU approval in Q2 for advanced basal cell carcinoma.
  • Fool-worthy thoughts Pharmaceuticals segment headwinds increase this year due to Diovan monotherapy generic launch. Lucentis wet-AMD sales stabilizing; however, Eylea label expansion to DME could threaten sales in 2015. Tecfidera roll-out globally will eat into Gilenya ex-U.S. sales. New drug approvals will need to offset considerable headwinds.
  • .Crush non-dividend paying stocks over the long term.