Cosentyx’s performance in 2016
Launched in the US in 1Q15, Novartis’s (NVS) Cosentyx managed to report revenues of around $1,128 million in 2016. This performance gave the drug “blockbuster therapy” status. Cosentyx has reported robust sales worth around $400 million in 4Q16. However, Novartis expects modest growth in the drug’s sales in 1Q17 due to negotiations related to rebates that the company will have to pay to healthcare payers. However, the company is confident of robust sales for the drug in 2017 due to steadily increasing demand both in the US as well as in Europe. Cosentyx is currently competing with other psoriasis drugs such as Johnson & Johnson’s (JNJ) Stelara, AbbVie’s (ABBV) Humira, and Amgen’s (AMGN) Enbrel.
Cosentyx has demonstrated its superior clinical profile in terms of long-term efficacy in psoriasis (or PsO), psoriatic arthritis (or PsA), and ankylosing spondylitis (or AS) indications. The drug has also demonstrated its ability to inhibit disease progression for two years in PsA and AS indications. Plus, Consentyx has demonstrated a significant response from 94% of patients within 16 weeks of re-treatment with the drug.
Further, the drug has displayed a robust safety profile. There have been very few instances of injection site reactions with Cosentyx. Additionally, the drug has shown almost negligible immunogenicity, which implies that there’s hardly any immune response due to the drug. These characteristics have made Cosentyx a best-in-class Interleukin 17 (or IL-17) monoclonal antibody.
If Cosentyx manages to report solid revenue growth in 2017, it could have a positive impact on Novartis stock and on the Vanguard FTSE All-World ex-US ETF (VEU). Novartis makes up about 0.74% of VEU’s total portfolio holdings.
In the next article, we’ll discuss Cosentyx’s penetration across multiple indications.
In 2016, Novartis’s (NVS) Cosentyx surpassed its closest competitor, Eli Lilly’s (LLY) Taltz, in number of total weekly prescriptions in the US market.
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