Zacks_Analysts' Blog : Novartis Shares More Positive Data - Analyst Blog

Novartis AG (NVS) recently reported positive data from late-stage trials on pipeline candidate, NVA237, being studied for the treatment of chronic obstructive pulmonary disease (COPD). The data were presented at the European Respiratory Society (ERS) congress.

The GLOW1 and GLOW3 studies demonstrated that patients who were given NVA237 experienced significantly increased lung function, a fast onset of action at first dose, as well as improved exercise endurance, as compared with placebo.

In late June 2011, Novartis had reported data from another phase III trial (GLOW 2), which showed that once daily NVA237 demonstrated similar efficacy to Pfizer Inc.’s (PFE) Spiriva and superiority over placebo in improving lung function in patients with moderate-to-severe COPD.

We note that NVA237 is currently under review in the European Union (EU), and upon approval, it will be marketed there under the brand name Seebri Breezhaler.

Novartis is also studying NVA237 in combination with Onbrez Breezhaler as QVA149, in a late-stage trial. The filing of QVA149 is expected to take place in both US and EU in 2012, with potential launch in the US in 2013.

Our Recommendation

Currently, we have a Neutral recommendation on Novartis. The company carries a Zacks #3 Rank (Hold rating) in the short run. Though pleased with Novartis’ wide range of products and its efforts to diversify further, as is evident by the acquisition of eye-care company Alcon, we prefer to remain on the sidelines due to the imminent patent cliff faced by the company.