Novartis drops development of NKS104 cholesterol drug

By Angela McDaniels

Seattle, Dec. 16 - Novartis AG said it will stop development of NKS104 (pitavastatin), a lipid-lowering agent in phase 2 trials for the treatment of high cholesterol.

Data from recent investigational trials showed the compound was no longer "competitive enough" for Novartis to invest further resources, the company said.

As a result, Novartis intends to record an impairment of $266 million in the fourth quarter of 2005 to write off the remaining value of NKS104. Novartis already recorded an impairment of $66 million in the third quarter related to the acquired and capitalized marketing rights for NKS104, the company said.

Novartis will seek licensing partners for the compound, the European rights to which were acquired under a licensing agreement from Kowa.

Despite these charges, Novartis said it expects to report record group operating and net income for the full year based on the continued favorable business developments in 2005.

Novartis is a pharmaceuticals company based in Basel, Switzerland.

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