Novartis cuts jobs as Entresto patent expiry nears

USA – Novartis is set to lay off 427 employees in the U.S. this year as it prepares for the loss of market exclusivity for its top-selling heart failure drug, Entresto.

The layoffs will occur at the company’s U.S. headquarters in East Hanover, New Jersey, according to a notice from the New Jersey Department of Labor & Workforce.

The notice also mentioned that 290 jobs were planned to be cut at Bristol Myers Squibb in February. The job reductions are scheduled between June and October and are part of Novartis’ restructuring of its cardiovascular division.

The company is shifting its focus as Entresto (sacubitril/valsartan) approaches patent expiration. In 2023, Entresto generated US $7.7 billion in sales, marking a nearly 30% increase from the previous year, making it Novartis’ highest-grossing product.

Alongside Entresto, Novartis faces upcoming patent expirations for two other major drugs: the cancer treatment Tasigna (nilotinib) and the thrombocytopenia drug Promacta/Revolade (eltrombopag). Last year, these drugs brought in US $1.67 billion and US $2.22 billion, respectively.

In its fourth-quarter financial report, Novartis confirmed it expects generic competition for all three drugs by mid-2025.

However, the exact timeline could shift based on ongoing litigation outcomes. Despite this, the company anticipates a significant financial impact from these patent expirations in the near future.

“The restructuring reflects our strategic pivot toward new therapies as we navigate the patent landscape,” said a Novartis spokesperson.

“While changes like these are difficult, we remain committed to driving innovation and addressing unmet medical needs.”

Novartis’ cardiovascular division is redirecting resources from Entresto to newer treatments like Leqvio (inclisiran), a cholesterol-lowering drug, and pipeline candidates such as pelacarsen, which targets lipoprotein(a).

Leqvio, a PCSK9 inhibitor approved in 2021, is designed to complement statins for patients struggling to achieve target cholesterol levels.

The drug’s label was expanded in 2023 to allow earlier use in patients with additional risk factors such as high blood pressure and diabetes.

Leqvio sales more than doubled in 2023, reaching US $754 million. Novartis has long positioned it as a future blockbuster, and recent clinical data suggest further potential in preventing cardiovascular diseases such as heart attacks and strokes.

Pelacarsen, currently in phase 3 trials, is being studied to determine if it can lower major cardiovascular event risks in patients with elevated lipoprotein(a) levels. Results from this trial are expected later in 2024.