How Novartis’s Immunology and Dermatology Portfolio Looks after 3Q17



Neoral-Sandimmune revenue trends

In 3Q17, Novartis’s (NVS) Neoral generated revenues of ~$126 million, which represents a ~3% YoY (year-over-year) fall and a 2% QoQ (quarter-over-quarter) fall. Generic competition and price reduction in Europe and Japan primarily attributed to the modest decline in YoY revenues. In the marketplace, Neoral competes with Astellas Pharma’s (ALPMY) Prograf.

Neoral acts as an immunosuppressant and prevents organ rejection after a bone marrow, kidney, liver, or lung transplant. Neoral also finds its use in the treatment of some autoimmune disorders such as rheumatoid arthritis (or RA), psoriasis, and atopic dermatitis (or AD).

Zortress, Certican revenue trends

In 3Q17, Zortress generated revenues of ~$107 million, or ~6% higher YoY basis and 7% higher QoQ. Zortress (everolimus) is indicated for the prevention of transplant rejection in individuals who underwent a kidney or liver transplant. Zortress faces stiff competition from Pfizer’s (PFE) Rapamune.

Myfortic revenue trends

In 3Q17, Myfortic generated revenues of ~$94 million, or ~3% lower YoY and 4% lower QoQ. Myfortic is indicated to prevent transplant rejection in individuals who underwent a kidney transplant. Zortress and Myfortic compete with Roche’s (RHHBY) CellCept.

Illaris revenue trends

In 3Q17, Ilaris generated revenues of ~$107 million, or ~47% higher YoY and 9% higher QoQ. Ilaris (canakinumab) is used for the treatment of individuals with certain Periodic Fever syndrome and systemic juvenile idiopathic arthritis.

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

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