Novartis restructuring U.S. business

Novartis AG (NYSE:NVS; SIX:NOVN) will restructure its U.S. business in anticipation of lower sales this year from two hypertension drugs, including its multi-billion-a-year drug Diovan valsartan, which loses U.S. patent exclusivity in September. Sales of the second drug, Rasilez/ Tekturna aliskiren, are expected to decline as a result of data from the Phase III ALTITUDE trial released in December. In Type II diabetics with renal impairment, Rasilez led to an increased incidence of non-fatal stroke, renal complications, hyperkalemia and hypotension. Diovan recorded $4.3 billion in worldwide sales for the first nine months of 2011, while Rasilez recorded $449 million in the same period (see BioCentury Extra, Dec, 20, 2011).

Additionally, Novartis discontinued all development of cardiovascular product elinogrel ( PRT128) due to portfolio reprioritization. Last August, Novartis suspended a Phase III trial in chronic coronary heart disease to reprioritize development of the compound in another indication. Novartis said it is in discussions with partner Portola Pharmaceuticals Inc. (South San Francisco, Calif.) about next steps. ...