Novartis Gets Full Rights To New Respiratory Drug

Novartis AG Tuesday said it had acquired the full rights to an experimental drug to treat asthma and smoker's cough, in an asset swap with Schering-Plough Corp .

The move underlines the Swiss drugmaker's intention to build a portfolio of drugs to treat respiratory diseases, to lessen dependence on its blockbuster heart drug Diovan which will lose patent protection in two or three years.

Novartis, based in Basel, said it has assumed worldwide rights to develop and sell experimental drug QMF149, a combination of Novartis' own smoker's cough drug QAB149 and Schering-Plough's anti-inflammation drug mometasone. QAB was filed for regulatory approval in the U.S. and Europe late last year. A decision is expected by mid-2010.

In return, Schering-Plough gets the exclusive rights to develop and sell a fixed combination of its own mometasone and Novartis' asthma and smoker's cough drug Foradil, which is already approved for sale.

The companies have agreed to share royalties on sales of the respective products. Should it win regulatory approval, Novartis will book worldwide sales of QMF149. The drug will probably be filed for approval in 2013, said Karl-Heinz Koch, analyst in Zurich with broker Helvea.

Novartis will be presenting detailed late-stage study data on QAB149 at the American Thoracic Society Meeting in San Diego, which runs until May 20. The data include a direct comparison to market leading drug Spiriva, sold by privately-held German company Boehringer Ingelheim and Pfizer Inc.

At 0730 GMT, Novartis shares were unchanged at CHF44.06. The shares have lost 15% in value so far this year, underperforming the European healthcare sector, down 7.6% year-to-date, and the broader Swiss market, which is 1.8% lower in 2009.

Source : money.cnn.com