Novartis MS drug: less relapse than Avonex

Initial results from the first late-stage study of Novartis' oral drug FTY720 (fingolimod) in relapsing-remitting multiple sclerosis shows that it works better than Biogen Idec's $1.9 billion-a-year injectable drug Avonex ( interferon beta-1a).

The Swiss drug major reaffirmed its plan to submit marketing applications for the agent by the end of next year. Deutsche Bank analyst Michael Leuchten said that fingolimod could generate $480.0 million in 2012.

A Pharmacor report last year tipped the drug to lead the new wave of MS therapies because of its oral formulation and efficacy (Marketletter April 9, 2007). However, as highlighted by the report and by analysts commenting on the new data, greater endorsement of its potential depends on favorable side effect data from longer-term studies.