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UPDATE: Novartis Drug More Effective In Treating Smoker's Lung



(Rewrites and adds detail and comment.)

By Katharina Bart and Julia Mengewein

Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Swiss drug maker Novartis AG (NVS) said Tuesday its experimental respiratory drug QAB149 improved lung function and reduced breathlessness in a late-stage trial with patients suffering from chronic obstructive pulmonary disease, or COPD.

Patients with COPD, commonly known as smoker's lung, saw 20% more days free of relief medication to treat acute episodes of severe breathlessness with once- daily treatment QAB149 than with tiotropium, Novartis said. Tiotropium is sold by Pfizer Inc. (PFE) and Boehringer Ingelheim GmbH as Spiriva.

At 0720 GMT, Novartis shares traded up 0.44 Swiss francs ($0.42), or 0.9%, at CHF49.86, outperforming the Swiss blue-chip SMI index, which traded up 0.1%. Novartis shares have shed around 6.2% of their value since the start of the year, underperforming the Dow Jones Stoxx Europe 600 health care index, which has gained 4.1% over the period.

"The potential superiority of QAB149 over gold standard treatment Spiriva is very reassuring and could lead to increased revenue forecasts going forward," said Andrew Weiss, analyst at Vontobel. He rates Novartis at buy.

While Zuercher Kantonalbank analysts expect the drug to generate as much as $ 1.3 billion in sales in its best years, Birgit Kuhlhoff of Rahn & Bodmer takes a more cautious stance.

"The other gold standard treatment for COPD, GlaxoSmithKline's (GSK) Advair, is losing patent protection in 2011, so pricing will become an issue for Novartis," said Kuhlhoff, who has Novartis on her recommendation list. She doesn't expect the drug to reach $1 billion in sales.

The Basel-based drug maker gave the update from Phase III trials of the drug in connection with a respiratory health meeting in Vienna this week.

The most common adverse reactions to QAB149 observed in the study were nasopharyngitis, coughs, upper respiratory tract infections and headaches, Novartis said, though most cases were mild or moderate, and became less frequent if treatment was continued.

"These indacaterol (QAB149) data, in effect, mean that the improvements in lung function are accompanied by important quality-of-life improvements that our patients need," said Professor Ronald Dahl, of the University Hospital of Aarhus, Denmark. He is one of the lead investigators of the study.

The data is noteworthy because Novartis expects QAB149 to lay the foundation for a portfolio of respiratory drugs that will include fixed-dose combinations of this with other treatments.

Company Web site: www.novartis.com

-By Katharina Bart, Dow Jones Newswires; +41 43 443 80 45; katharina.bart@ dowjones.com


  (END) Dow Jones Newswires
  09-15-090404ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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