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How Does Novartis’s Ophthalmology Portfolio Look?

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Travoprost group revenue trends

In 1H17, Novartis’s (NVS) Travoprost drugs reported revenues of around $290 million, which is a ~6% decline on a YoY basis. In 2Q17, the Travoprost group generated revenues of around $142 million, which reflected a ~9% decline on a YoY basis and a 4% decline on a quarter-over-quarter basis.

Travoprost, marketed as Travatan and Travatan Z, is used for the management of glaucoma. Travoprost is a prostaglandin F2α analog that acts as an agonist at the prostaglandin F receptor. Prostaglandin F receptor agonists increase the outflow of aqueous fluids from the eye, which leads to a simultaneous lowering of intraocular pressure.

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Systane group revenue trends

In 1H17, Systane drugs reported revenues of around $192 million, which reflected ~6% growth on a YoY basis. In 2Q17, the Systane group generated revenues of around $104 million, which reflected 13% growth on a YoY basis and 18% growth on a quarter-over-quarter basis. Systane is a lubricant used for the treatment of dry eyes.

Topical Olopatadine group revenue trends

In 1H17, the topical olopatadine group reported revenues of around $176 million, which is a ~12% decline on a YoY basis. In 2Q17, the topical olopatadine group generated revenues of around $76 million, which reflected ~21% growth on a YoY basis and a 24% decline on a quarter-over-quarter basis.

Olopatadine is an antihistamine, anticholinergic, mast-cell stabilizer used for the treatment of itching related to allergic conjunctivitis. Novartis markets Olopatadine in the US under the trade name Pazeo.

In 1H17, Novartis’s ophthalmology drugs generated net revenues of around $2.7 billion, which reflected a ~3% decline on a YoY basis. In 1H17, Lucentis reported revenues of $922 million, which is 34% of net ophthalmology revenues.

Novartis’s peers in the ophthalmology drug market include Regeneron Pharmaceuticals (REGN), Allergan (AGN), Roche Holding (RHHBY), Valeant Pharmaceuticals, Bayer, and others. The BLDRS Developed Markets 100 ADR Index Fund (ADRD) invests ~5.5% of its total portfolio holdings in Novartis.

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