For Novartis, 2012 Is Set To Be A Bumpy Ride

25 Jan 2012

• By John Davis

With the loss of exclusivity for its blockbuster heart drug, Diovan, coming in September, management focused on the company’s long-term prospects during a fourth quarter financial update.

For Novartis AG, 2012 will be a difficult year, but so far, the news is worse than expected. Just as it prepares to lose patent protection for its top-selling heart drug Diovan (valsartan), it faces a manufacturing mess-up at its Lincoln, Neb. facility, emerging side effect concerns associated with the blood pressure medication Tekturna/Rasilez (aliskiren), and concerns about an unexpected death associated with its new oral multiple sclerosis drug Gilenya (fingolimod).

But during a Jan. 25 fourth quarter sales and earnings call, management reassured it was ready to navigate through the...