Novartis and Speedel

Swiss drug major Novartis' Tekturna (aliskiren) has been approved in the USA, to become the first new type of drug for high blood pressure in more than a decade. The Food and Drug Administration approved the direct renin inhibitor either as monotherapy or in combination with other blood pressure medications. On the day of the news, March 6, shares in Novartis rose 3.6% to 69.25 Swiss francs.

According to analysts at Lehman Brothers, the commercial opportunity for Tekturna is huge. In a note to investors, they stated that even a 5% share of the branded US prescription drug market represents a $1.0 billion annual peak sales opportunity. Lehman Brothers predicts that the drug will be launched in the first quarter of this year and these analysts maintain that it will earn $1.75 billion at its peak, adding 0.03 francs per share to Novartis' net present value.

Industry observers noted that the predicted blockbuster, which was developed in collaboration with Swiss biotechnology firm Speedel, could eventually replace its blood pressure drug Diovan (valsartan), which earned $4.0 billion in full-year 2006 (Marketletter January 29) and faces patent expiration in 2012.