Novartis developed a new drug which was proven effective in reducing hospital admissions and death risks associated with heart failure by up to 20 percent, compared to standard therapy.
The experimental treatment, called LCZ696, was tested against enalapril in a trial involving 8,442 patients. The researchers presented the results of their study during the annual meeting of the European Society of Cardiology (ESC).
"Given the survival advantage of LCZ696 over currently available drugs, once this drug becomes available, it would be difficult to understand why physicians would continue to use traditional (drugs) ... for the treatment of heart failure," said principal investigator Milton Packer of the University of Texas to Reuters.
LCZ696 is classified as a two-in-one pill and the recommended dose is twice a day. The drug has the same active ingredient found in Diovan that helps regulate blood pressure and another drug that blocks neprilysin to normalize kidney functions.
Side effects of the new drug include having lower than usual blood pressure, coughing, excessive levels of potassium, and non-serious swelling.
LCZ696 may be effective and promising, but it will also come at a premium price. Forecasts for the drug have been increasing. The current estimate for LCZ696's overall worth is $1.9 billion. Novartis wasn't aware of any competition for the next seven years and the company has secured a patent until 2026, according to Bloomberg.
Novartis is banking on the sales that this new drug can bring. New-York based analyst Timothy Anderson of Sanford C. Bernstein & Co. predicted that the drug may generate as much as $8 billion worth of revenue per year.
"This is going to become one of our key brands. It's clearly a multi-billion dollar opportunity," David Epstein, head of Novartis's pharmaceuticals division, said in a telephone interview with Bloomberg.
The results of the study were published in the Aug. 30 issue of New England Journal of Medicine.
