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Novartis AG (NOVN.EB) and Pfizer Inc.
PFE, -1.87%
They are teaming up to target a complex type of liver disease, highlighting the drug companies' growing desire to work with their rivals to fight hard-to-treat conditions.
The two giants of the pharmaceutical industry announced Monday that they would combine a Novartis drug for the treatment of non-alcoholic fatty liver disease with several Pfizer molecules that target the same disorder.
The drugs in question are NASH, the progressive form of non-alcoholic fatty liver disease. The accumulation of fat causes inflammation and scarring in the liver and can be life threatening, requiring a transplant.
Dozens of companies are working to develop a treatment for NASH, for which there is currently no approved drug. According to the National Institute of Diabetes and Digestive and Kidney Diseases, NASH would affect up to 12% of US adults. But only a fraction of people are aware of its condition because the disease has no symptoms in its infancy. This means that estimates of the potential size of the market for any successful treatment vary widely, ranging from $ 1 billion to over $ 5 billion, according to Leerink analysts.
Novartis and Pfizer believe that the combination of drugs may give them an edge over others because of the complexity of the disease. Novartis is already testing the same NASH drug in combination with an Allergan automated device.
AGN -1.71%
treatment.
"NASH is not just caused by liver abnormalities," said Morris Birnbaum, chief scientist in internal medicine at Pfizer. "It's a whole constellation of problems throughout the body."
Drugs currently being developed for NASH target one or more of the three main aspects of the disease: fat accumulation, inflammation or scarring. Novartis's drug works on all three fronts, while Pfizer's drugs primarily treat fat accumulation. Eric Hughes, head of development for immunology, hepatology and dermatology at Novartis, said the Pfizer drugs would strengthen Novartis' fat-fighting capabilities.
The companies plan to test various combinations of drugs in the laboratory to determine which ones to consider in human trials. All of the drugs in question are already undergoing clinical trials as standalone therapies, which companies will pursue. Novartis and Pfizer have not yet determined how they would sell an association treatment. "We will cross this bridge when it is necessary," said Dr. Birnbaum. The companies did not disclose the financial terms of the transaction.
Drug manufacturers are increasingly choosing to test their drugs in combination with those of their competitors for complicated conditions.
Merck & Co.
MRK, + 0.63%
is testing an anti-cancer drug developed by AstraZeneca PLC (AZN.LN) in combination with some of its own oncology treatments. Both companies now share the rights to the drug. Pfizer and German Merck KGaA (MRK.XE) share the same rights to an anti-cancer drug that everyone tests in association with various candidates in their own oncology pathways.
Dr. Birnbaum of Pfizer stated that collaborations are gaining importance in the pharmaceutical industry as drug development becomes more difficult.
"Whenever we develop a therapy that works, the bar to develop something better continues to progress," he said. "It's not cost-effective to get into a race so we can get them to patients faster by working together."
Write to Denise Roland at [email protected]
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