Today Novartis and its partner Human Genome Sciences announced that they will terminate their collaboration on the hepatitis C drug, albinterferon alfa-2b aka Zalbin. The negatice FDA response letter they had received convinced them this was the only logical course of action. This will result in Novartis setting aside a $230 M reserve in 2010.
If this wasn't good enough news, Novartis will also stop its development on Mycograb (aka efungumab), an antifungal agent being tested for use in invasive candidiasis, and set aside another $360 M as a reserve. Thus, there will be a $590 M write down on these two projects in the 4th Qtr.
See Fierce Biotech, PharmaGossip, and Market Watch.
Posted by Bruce Lehr October 5th 2010.
Seeking Alpha (EP Vantage) posts on high cost of failure shown by Novartis deals
http://seekingalpha.com/article/228872-novartis-reveals-the-high-cost-of-failure
Posted by: bigredbruce | 10/07/2010 at 02:34 PM