Home > PHARMA BUSINESS, PHARMA NEWS, PHARMACEUTICALCOMPANY > Novartis Terminates Development of Two Drugs, Expecting Charge of $590m

Novartis Terminates Development of Two Drugs, Expecting Charge of $590m

With the termination of the development of a potential hepatitis C drug and an antifungal product, the Company would be able to take charge of $590 million in the third quarter, as stated by Novartis AG on Tuesday.
The development of potential hepatitis C treatment Joulferon, which is known as Zalbin in the U.S. was a joint effort of Novartis and Human Genome Sciences Inc.

On Tuesday, Human Genome stated that FDA had urged for more information about the drug Zalbin, which made partners to suspend its development. Also, Novartis announced putting a halt on the development of anti-fungal agent Mycograb.
Earlier in June, Human Genome had expressed that the new drug might not be approved by the Food and Drug Administration, as its effectiveness is similar to those already available in the market. After the release of the statement, Novartis took back the drug’s approval application from European regulators, as it was worried that the authorities might ask for more studies.
“We expect the charges for the program cuts to be partly offset by a $400 million gain in the fourth quarter from the sale of U.S. rights for the bladder treatment Enablex to Warner Chilcott PLC”, said Novartis.
As estimated by analysts, Zalbin would have captured the market share around $9 billion if the drug had been approved. The drug would have landed into a competitive market for hepatitis C drugs, where many other pharmaceutical Companies would have placed similar drugs. Some such Companies that are also developing hepatitis C drugs are Vertex, Merck & Co., Bristol-Myers Squibb Co. and Zymogenetics.
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