Novartis says it is to discontinue further development of two investigational compounds (drugs), Albinterferon alfa-2b for adults with chronic hepatitis C and Mycograb (efungumab) an antifungal agent for invasive candidiasis in adults. The hepatitis compound was being developed jointly with Human Genome Sciences Inc.
Novartis says the discontinuation of Albinterferon alfa-2b was made along with Human Genome Sciences after feedback from European Union and United States regulatory authorities, as well as findings that emerged from a new Phase II study which investigated monthly dosing of the experimental compound.
In a communiqué, Novartis writes:
An intangible asset impairment charge of approximately USD 230 million will be taken in the third quarter of 2010 in the Novartis Pharmaceuticals division.
Antifungal agent, Mycograb (efungumab) was being trialed as an add-on therapy, to be used in combination with amphotericin B for candidiasis in adults – a common yeast infection. On two occasions, the European Medicines Agency refused to grant marketing authorization for Mycograb, citing concerns about quality and safety issues.
In the same communiqué, Novartis also writes, referring to the Mycograb discontinuation:
An intangible asset impairment and other related charges of approximately USD 360 million will be taken in the third quarter of 2010 in the Novartis Pharmaceuticals Division.
Like most of its rivals, Novartis, a pharmaceutical giant is facing patent losses which may affect future sales. The focus at the moment for most of the industry is on more efficient and profitable R&D, cost cutting and buying companies with interesting drugs and/or compounds in development. Novartis has acquired 77% of Alcon Inc., and should have enhanced sales in eye care products as a result, especially in the Far East markets.
Source: Novartis
Written by Christian Nordqvist