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Gilenya and Entresto Could Keep Boosting Novartis’s Revenue Growth

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Sep. 22 2017, Updated 6:36 a.m. ET

Gilenya revenue trends

In 1H17, Novartis’s (NVS) Gilenya reported revenues of around $1.6 billion, which reflected ~3% growth on a year-over-year (or YoY) basis. In 2Q17, Gilenya generated revenues of around $837 million, which is ~3% growth on a YoY basis and ~16% growth on a quarter-over-quarter basis.

Gilenya is used for the treatment of individuals with relapsing forms of multiple sclerosis (or MS). The drug helps in reducing the frequency of clinical exacerbations and delays the development of physical disability.

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In September 2017, Novartis presented the results from the ACROSS study, which evaluated ten-year disability outcomes in individuals with relapsing-remitting multiple sclerosis (or RRMS) treated with Gilenya. At ten years, patients on continuous Gilenya therapy had significantly lower change from the baseline in their expanded disability status scale (or EDSS) score compared to patients on non-continuous Gilenya therapy. Determination of the EDSS score was the primary endpoint of the study. Patients on Gilenya therapy showed a reduction in the risk of progression to secondary progressive MS (or SPMS) by 66.2% compared to patients who were not on continuous Gilenya therapy. The superior long-term clinical efficacy statistics could boost Gilenya’s commercialization capabilities. In the MS drugs market, Gilenya competes with Biogen’s (BIIB) Tecfidera and Sanofi’s (SNY) Aubagio.

In September 2017, Novartis also announced successful results from the Phase 3 PARADIGMS trial, which evaluated the safety and efficacy of Gilenya therapy in children and adolescents with MS. The success in the clinical trial may help in the label expansion of Gilenya.

Entresto revenue trends

In 1H17, Entresto reported revenues of around $194 million compared to $49 million in 1H16. In 2Q17, Entresto generated revenues of around $110 million compared to $32 million in 2Q16. In 2Q17, Entresto witnessed 31% growth on a quarter-over-quarter basis.

Entresto is used to reduce the risk of death and hospitalization in individuals with heart failure and have lower ejection fraction. To learn more about Entresto, please refer to How Novartis Is Aiming to Increase Entresto Sales in 2017.

Novartis’s peers in the cardiovascular drug market include Pfizer (PFE), Merck (MRK), AstraZeneca, Sanofi (SNY), and others. The Vanguard FTSE Europe ETF (VGK) invests ~1.5% of its total portfolio in Novartis.

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