Bloomberg reported that Jay Bradner, head of Novartis R&D, revealed that after conducting a comprehensive pipeline asset assessment, Novartis has reduced its number of new drug projects from 430 to 340.
Bradner said: “We have a good understanding of the scientific foundation behind these 90 projects. Although it is frustrating to give them up, it is a good decision for Novartis. After all, although these projects have good potential, but The patient’s clinical treatment may not revolutionize, and may not match Novartis’s strategy of achieving greater commercial success.”
Bradner further explained: “Some projects will be licensed to other pharmaceutical companies, and some projects will stop on the shelf for a little while. Everyone should expect Novartis to bring some patients whose lives are threatened. A truly breakthrough, differential, or important clinical value of a therapeutic drug.”
Novartis’s research and development slimming action has been going on for some time. Earlier this year, Novartis transferred to GSK a total of $13 billion in shares of the consumer health business joint venture it held with the latter. In July of this year, Novartis closed its antibiotic and antiviral drug research and development department. On October 3, three additional antibiotic programs for the treatment of patients resistant to Gram-negative bacteria were licensed to Boston Pharmaceuticals.
In fact, in addition to Novartis, almost all major foreign companies in the world are doing slimming and integration of pipeline assets, or the pharmaceutical giants have become more focused. After assessing the clinical and commercial potential of the company’s projects, they will divest some projects that they believe are of little value, freeing up more R&D resources to incubate more projects with bright prospects.
The reason why Novartis abandoned the antibiotic project is that the return on the development of new antibiotic drugs is getting lower and lower, and the value of new therapies will shrink sharply in the face of the rapid emergence of drug resistance problems. GSK stripped its rare disease business in April and handed it to Orchard Therapeutics, which announced on October 31 that it would raise $200 million for a $14/share IPO.
According to Bloomberg, Novartis seems willing to invest more in cell, gene therapy, and oncology. For the above-mentioned $13 billion in income from the transfer of shares, Novartis is mostly used in new mergers and acquisitions. In April, Novartis acquired the American gene therapy company AveXis for $8.7 billion. On October 18, Novartis acquired Endocyte, a company focused on tumor-targeted drug development, for $2.1 billion.
Novartis’s current CEO, Vas Narasimhan, who was previously the head of Novartis’ global R&D, has a strong sense of innovation and supports Jay Bradner in exploring some truly innovative and innovative medicines and technologies.