Novartis has decided to stop the development of NKS104 (pitavastatin), a lipid-lowering agent in phase II for the treatment of elevated total cholesterol, after data from recent investigational trials showed the compound was no longer competitive enough for Novartis to invest further resources. The company intends to seek licensing partners for this compound.
As a result, Novartis intends to record an impairment of USD 266 million in the fourth quarter of 2005 to fully write off the remaining value of this asset. The European rights to this compound were acquired under a licensing agreement from Kowa. Novartis already recorded an impairment of USD 66 million in the third quarter related to the acquired and capitalised marketing rights for NKS104, informs a company release.
Novartis AG is a world leader in pharmaceuticals and consumer health. In 2004, the group's businesses achieved sales of USD 28.2 billion and pro forma net income of USD 5.6 billion.