Biotech Values

[Praveen]

Novartis set to trumpet new blood pressure drugs
Fri May 12, 2006 4:39 AM ET
ZURICH, May 12 (Reuters) - Swiss pharmaceutical firm Novartis (NOVN.VX: Quote, Profile, Research) is set to trumpet the benefits of its new blood pressure drugs at a U.S. medical conference in a move that could highlight rising sales potential for the treatments.

Blood pressure treatment Rasilez, co-developed with Speedel (SPPN.S: Quote, Profile, Research), and 2-in-1 pill Exforge may top the agenda at next week's meeting of the American Society of Hypertension (ASH).

Novartis is preparing to release new study data on the two treatments that could show significant benefits for patients suffering from hypertension, and boost the products' sales potential accordingly, analysts say.

Sales potential in the hypertension market is huge, with more than 65 million Americans, or one in three adults, estimated to have high blood pressure, with around 70 percent of them not under control.

Rasilez -- the most important item on the ASH agenda -- is expected to be a multibillion-dollar seller for Novartis.

Analysts expect the Novartis data and physician feedback at the conference to be positive, with Merrill Lynch saying markets may have underestimated the potential for Rasilez. Merrill said Rasilez had the potential for $1 billion in sales by 2011.

A positive showing could lead to broker upgrades and boost the share prices of Novartis and Speedel, a Swiss biotech firm whose fortunes are heavily dependent on its share of revenues from the product.

The oral medicine Rasilez is a first-of-its-kind treatment because it acts within the body's renin system, which is central to blood pressure regulation. It may also help protect the patient's organs from blood-pressure-related damage.

Novartis is seeking ways to shore up its cardiovascular and hypertension franchise, currently supported by its drug Diovan, which produced a whopping $3.7 billion in sales in 2005 but will lose its patent protection in 2012

PS:I have a position in Speedel