Novartis suspends U.S. sales of Zelnorm

Financial Analysis: Novartis will survive Zelnorm

By STEVE MITCHELL

WASHINGTON, April 2 (UPI) -- Novartis suspended U।S। sales of Zelnorm after the irritable bowel syndrome drug was found to be associated with an increased risk of heart problems and stroke, but analysts think the move will be only a slight bump for the pharmaceutical giant and is actually more reflective of an increasingly cautious Food and Drug Administration.

Nigel Birks, an analyst with Dresdner Kleinwort, said the Zelnorm suspension is "obviously going to have an impact on Novartis," noting that the drug was slated to bring the company more than $1 billion in 2012.

"It does reduce this year and going forward some of the company's anticipated growth and earnings," Birks told United Press International.
But ultimately, the long-term outlook of the company is positive and it should recover after taking a hit in the short term, he added.

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