Delaware Court Denies Novartis Block on Entresto Generics Launch

Novartis has suffered a significant legal setback as a Delaware federal judge ruled that MSN Pharmaceuticals' generic version of its heart failure drug Entresto does not infringe on Novartis' key patent, allowing MSN to proceed with production and potential market launch following FDA approval. This decision threatens Novartis' market dominance and revenue from Entresto, which generated over $7.8 billion globally last year, and caused a more than 2% drop in Novartis' stock price. Despite Novartis' efforts to block the generic through litigation, the court's rejection of their claims paves the way for increased competition in the heart failure drug market. Novartis continues to experience growth in other key products, but the ruling highlights challenges in maintaining exclusivity for blockbuster drugs amid generic competition. Analysts currently hold a 'Hold' rating on Novartis stock, reflecting cautious market sentiment amid these developments. The case underscores ongoing legal battles in the pharmaceutical industry regarding patent protections and generic drug entries.