Novartis stops NKS104 development

Novartis has announced it has ceased development of the drug NKS104 (pitavastatin) during Phase II trials.

The decision was made as it was felt the drug, designed to reduce cholesterol, was no longer competitive.

The firm, based in Basel, Switzerland, now intends to record an impairment of $266 million in the fourth quarter of 2005 to fully write off the remaining value of the asset.

This is in addition to an impairment of $66 million in the third quarter related to the acquired and capitalised marketing rights for NKS104, when the European rights to the compound were acquired under a licensing agreement from Kowa.

A company spokesman said: “Despite these charges, and barring unforeseen events, Novartis expects to report record group operating and net income for the full year based on the continued favourable business developments in 2005.”

Novartis now intends to seek licensing partners for NKS104.

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