ZURICH (Dow Jones)--Novartis AG (NVS) said Wednesday that new study results showed its experimental multiple sclerosis pill FTY720 worked better than Biogen Idec's (BIIB) Avonex, the leading current treatment for the disease, paving the way for filing the drug for marketing approval later this year.

Novartis, based in Basel, said results from a new late-stage study showed that 80% to 83% of patients taking FTY720 remained free of relapses during the one-year study - compared to 69% of those who took Avonex.

Analysts have in the past expressed concerns over the general safety of FTY720, in particular about the seven cases of skin cancer compared to only one on Avonex. Many have therefore lowered their estimates of the drug's potential. Citigroup expects FTY720 to generate around $620 million in annual sales in 2012.

Multiple sclerosis, or MS, is a chronic disease for which no cure is available, and patients usually require lifelong treatment once diagnosed. Symptoms range from blurred vision to partial or complete paralysis. In its most common form, called relapsing-remitting MS, patients suffer acute attacks - called relapses - of neurological dysfunction followed by complete or incomplete remission in function.

The data was presented at the American Academy of Neurology congress in Seattle, WA.
Novartis shares closed Tuesday at CHF42.46, having fallen 19% year-to-date. They've underperformed the European healthcare sector at large, which is down 10% so far in 2009.
Company Web Site: http://www.novartis.com
Article in the Wall Street Journal

Labels: Avonex