Novartis loses bid to block US Entresto generic through 2026
1. NVS can't prevent MSN Pharmaceuticals from making a generic Entresto until late 2026. 2. This ruling may impact NVS's revenue from its heart-failure drug significantly.
FAQ
Why Bearish?
The inability to block generic competition for Entresto can lead to revenue decline, as seen with other blockbuster drugs like Lipitor. Historical data shows revenue drops typically occur when generics enter the market, impacting brand-name sales.
How important is it?
The legal ruling directly affects a significant revenue source for NVS. Given Entresto's stature in the market, this event is likely to shape investor sentiment and financial forecasts.
Why Long Term?
The ruling allows generics through 2026, indicating prolonged pressure on NVS revenues. Companies often face substantial income reductions over multiple quarters when generics launch.