Tuesday, October 05, 2010

Clinical trials, ain't they a bitch - Novartis sees $590 Million charge

Novartis AG is stopping development of two experimental medicines, a decision that will result in charges of about $590 million in charges in the third quarter.
Novartis is halting work on albinterferon alfa-2b for use in chronic hepatitis C and Mycograb, an antifungal agent being tested for use in invasive candidiasis, the company said today in a statement.
Novartis and partner Human Genome Sciences Inc. decided to stop development of albinterferon alfa-2b after discussions with European and U.S. regulators and due to new data from a mid- stage study, Novartis said. Related charges will be about $230 million, the company said. Novartis didn’t give details about its decision to stop studying Mycograb, though it said it expects charges of about $360 million.
These charges will be partially offset by a gain of about $390 million because of the sale last month of the overactive bladder treatment Enablex to Warner Chilcott Plc, Novartis said. This will be recognized in the fourth quarter, the company said.
To contact the reporter on this story: Carey Sargent in Geneva at csargent3@bloomberg.net
To contact the editors responsible for this story: Phil Serafino at pserafino@bloomberg.net;

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