Novartis gains on breast cancer drug's survival promise

Novartis's drug Kisqali helped breast cancer patients live longer without tumors returning in a study that suggests the medicine could ward off cancer's recurrence in a broad population

The stock rose as much as 5.9% in Zurich trading, the steepest gain in more than a year. Patients in the trial lived longer according to a measure called invasive disease-free survival when they took Kisqali along with endocrine therapy rather than only the latter, Novartis said in a statement.

The study results offer a welcome boost for Novartis, which is working to cast off businesses that hinder its growth. The data suggest the treatment can reduce the risk of cancer returning after a few years without altering people's quality of life. The broad population of patients who could benefit opens up a $6 billion opportunity for Novartis, according to Peter Welford, an analyst at Jefferies.

"These data have the potential to be paradigm-shifting for patients at risk of recurrence," said Shreeram Aradhye, Novartis's chief medical officer.

Kisqali has been around since 2017, but it was given mostly to patients whose breast cancer had spread to other parts of the body. The data released Monday could vault it into a new category and challenge medicines such as Eli Lilly's Verzenio and Pfizer's Ibrance, analysts said.

The study results suggest "a wider label and broader commercial potential" for Kisqali than Verzenio, Welford wrote in a note to clients.

Detailed results will be presented at an upcoming medical meeting, Novartis said, adding that it would continue to evaluate patient outcomes, including overall survival.

Novartis shares have declined so far this year. Novo Nordisk surpassed the Swiss drugmaker in market value in late January, fueled by optimism for the Danish company's obesity treatments.