Novartis sheds staff as Entresto patent expiry looms

Novartis will cut 427 jobs this year in the US as it prepares for the loss of market exclusivity for its blockbuster heart failure therapy Entresto.

The jobs will go in East Hanover, New Jersey – the site of the company's US headquarters – according to a notice (PDF) from the New Jersey Department of Labour & Workforce, which also indicates that 290 jobs were scheduled to be shed at Bristol Myers Squibb in February.

The job losses are expected to take place between June and October this year and are a result of a restructuring of Novartis' cardiovascular commercialisation operations as it faces the loss of patent protection for Entresto (sacubitril/valsartan). The drug brought in sales of $7.7 billion last year, up nearly a third on the prior year, and is the company's biggest-selling product.

It is one of three major Novartis products that are nearing the end of their patent lives, along with cancer drug Tasigna (nilotinib) and Promacta/Revolade (eltrombopag) for thrombocytopaenia, which brought in $1.67 billion and $2.22 billion, respectively, last year.

In its fourth-quarter results update, Novartis said it expects generic competition for all three products in mid-2025, while also suggesting that the timing could change depending on the outcome of litigation. There's no doubt, however, that the company is facing a major hit to its top line in the next year or two.

Novartis said that the latest round of job losses is a result of a change in focus for its cardiovascular teams as they lower the emphasis on Entresto and devote more resources to its twice-yearly cholesterol-lowering drug Leqvio (inclisiran) and pipeline products like pelacarsen, which targets lipoprotein(a).

PCSK9 inhibitor Leqvio was first approved in 2021 as an add-on to statin therapy in patients unable to reach target cholesterol levels on statins alone. The drug had its label extended in 2023 to enable earlier use in patients with elevated lipid levels and an increased risk of heart disease due to other conditions like high blood pressure and diabetes.

Sales were initially modest but more than doubled to $754 million last year. Novartis has said from the outset that it is expecting it to be a blockbuster, and a few months ago presented data pointing to further potential for the drug in the primary and secondary prevention of cardiovascular diseases like heart attack and stroke.

Pelacarsen, meanwhile, is in phase 3 testing to see if it can reduce major cardiovascular events (MACE) in patients with established heart disease and elevated levels of Lp(a), with results due later this year.