Novartis Faces Trouble Finding Its Next Big Drug
Novartis struggles to replace aging medicines after new drug trials fall short of big hopes.
Drug makers live and die by their hit products. When patents run out, generic copies rush in and wipe out sales. Big companies must keep finding new winners to stay afloat.
Novartis is learning this lesson the hard way. The Swiss drugmaker faces fresh hurdles with its new pipeline. Weak data from recent clinical trials raised doubts about its future blockbusters. Earlier tests for a multiple sclerosis drug failed to beat expectations.
The timing hurts. Novartis is working through one wave of patent losses, but another wave approaches soon. The company needs massive new revenue drivers before old medicines lose protection.
Smart investors track drug pipelines. When clinical trials stumble, stock prices feel the pain. Keep an eye on how Novartis spends its cash to buy outside fixes.
Source: CNBC
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