Behind Novartis’s Entresto and Gilenya Performances in 3Q17



Entresto revenue trends

In 3Q17, Novartis’s (NVS) Entresto generated revenues of $128 million, compared with $53 million in 3Q16. Entresto witnessed a ~16% rise on a QoQ (quarter-over-quarter) basis.

Novartis’s sales force expansion in the US and reimbursement in Europe primarily attributed to the revenue growth of Entresto in 3Q17. Currently, Entresto is approved in 92 countries, and the company has made the drug available in around 50 countries. Novartis estimates that Entresto has been used for the treatment of around 360,000 patients with heart failure since July 2015.

Entresto (sacubitril/valsartan) is used for the reduction of the risk of death and hospitalization in individuals with certain types of chronic heart failure.

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Gilenya revenue trends

In 3Q17, Novartis’s Gilenya generated revenues of $801 million, which was ~15 higher YoY (year-over-year) but 4% lower QoQ.

In October 2017, Novartis presented the complete results from its phase-3 Paradigms trial. Novartis conducted the trial for the evaluation of the safety and efficacy of Gilenya for the treatment of children and adolescents with multiple sclerosis. In the trial, patients on Gilenya resulted in a 82% reduction in annualized relapse rate over a period of two years, compared with patients on interferon beta-1a. Gilenya’s safety profile remained consistent as observed in previous clinical trials.

Novartis’s Gilenya competes with Sanofi’s (SNY) Aubagio, Biogen’s (BIIB) Fampyra, Tecfidera, and Tysabri, and Teva Pharmaceuticals’ (TEVA) Copaxone.

In 3Q17, Biogen’s Fampyra, Tecfidera, and Tysabri reported revenues of around $24 million, $1.1 billion, and $469 million, respectively. In 3Q17, Teva Pharmaceuticals’ Copaxone reported revenues of $987 million.

Notably, the Vanguard Total International Stock ETF (VXUS) has ~0.67% of its total portfolio holdings in NVS.


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