Following reports that Novartis is preparing to offload its ophthalmology business, the pharmaceutical giant’s CEO has responded saying it currently has “no intention” of taking such action. However, the company has outlined five core therapeutic areas that exclude eyecare.
Novartis CEO Mr Vas Narasimhan made the comments at the J.P. Morgan Healthcare Conference in San Francisco this month, according to Fierce Pharma, refuting a recent Bloomberg report that the company is weighing various options, including divestitures of ophthalmology and respiratory products.
At the same event, Novartis outlined its “New Novartis” strategy, as a pure-play innovative medicines company that will prioritise five core therapeutic areas: cardiovascular, immunology, neuroscience, solid tumors and hematology.
This means it will focus on technology platforms, including gene therapy, cell therapy, radioligand therapy, targeted protein degradation and xRNA.
According to the Fierce Pharma report, compared with core focus areas, other assets will get fewer resources from a “relative prioritisation” standpoint, Narasimhan said.
While non-core assets may not get much attention in Novartis’ overall business, Narasimhan added “if something were to be a significant breakthrough […] we could build back up”.
Novartis’ ophthalmology unit – valued at US$5 billion (AU$7.5 billion) in some reports – has a significant presence in Australia and globally, with one of the first approved anti-VEGFs for macular disease, Lucentis (ranibizumab), available on the Pharmaceutical Benefits Scheme (PBS) since 2007.
The therapy – which now has seven indications in Australia – is now the eighth most expensive drug on the PBS, costing the government around $220 million annually.
The company subsequently developed the longer-acting (Beovu) which was listed on the PBS as a second-line anti-VEGF therapy for neovascular age-related macular degeneration in October 2021.
Novartis’ gene therapy program also includes Australia’s first approved gene therapy, Luxturna (voretigene neparvovec), which became available from August 2020 for patients with inherited retinal disease caused by pathogenic biallelic RPE65 mutations. And in December 2021, the company announced the acquisition of Gyroscope Therapeutics, a UK-based company behind an investigational gene therapy, GT005, for geographic atrophy that is the focus of key clinical trials in Australia.
As one of Novartis’ most advanced gene therapy programs, Narasimhan said if GT005 eventually shows a meaningfully stop or slowing of deterioration, it would be a “very, very significant medicine”.
In its quest to become a pure-play innovative medicines company, Novartis has made several strategic moves, including exiting its 36.5% stake in a consumer healthcare joint venture with GSK in 2018, spinning off its Alcon eyecare business in 2019, selling its 33% stake in fellow pharma giant Roche in 2021 and is now intended to spin off its generics unit Sandoz.
More reading
Novartis eyes sale of multi-billion-dollar ophthalmology business – report
Novartis targets GA gene therapy in Gyroscope Therapeutics deal
Novartis secures PBS recommendation for Beovu
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