Novartis drug appears to compete with partner Regeneron (REGN)

June 19, 2009 · Filed Under Diabetes, General, fda 

Novartis this morning said the FDA approved the sale of its Ilaris drug, one of the world’ s most expensive drug treatments, which targets a rare disease called cryopyrin-associated periodic syndrome (CAPS), and potentially some others.

That event may focus traders’ attention on Novartis development partner Regeneron Pharma (REGN), which has a competing treatment for the same CAPS disorder.

But what traders need to keep in perspective today is that CAPS is a tiny market; there are only about 7,000 known cases of it worldwide.

And CAPS is a gateway for both dugs to Novartis’ Ilaris and Regeneron’s Arcalyst to eventually target conditions that affect many more people .  It’s very possible — if not likely — that the two drugs might not square off in the same large markets down the road, pending future FDA approvals.

Arcalyst is seen as a drug that can target acute illness such as gout. In contrast, Ilaris may be better suited to chronic diseases, such as diabetes and chronic obstructive pulmonary disorder.

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