By Donato Paolo Mancini

Novartis AG (NOVN.EB) confirmed Thursday it would exit antibacterial and antiviral research, the latest in a string of big-pharma departures from the field and the latest move in the company's efforts to reconfigure itself as a medicines-focused operation.

The Swiss pharma giant said it is in out-licensing talks with other companies, and that it is actively seeking partners for its pre-clinical and clinical-stage programs for a special type of bacteria.

Once captivated by the potential of the field, and despite increasing antibiotic resistance worldwide, large pharmaceutical companies have gradually lost interest in this type of drug, mainly because of decreasing profit margins.

Newer antibiotics are usually administered as a last resort to diminish the chances of further increasing antibiotic resistance, thus lowering companies' chances of profiting from molecules they have spent a long time researching and marketing. Generic competition also discourages big players from research in the field.

AstraZeneca PLC (AZN) sold part of its antibiotics business to Pfizer Inc. (PFE) in 2016. Allergan PLC (AGN) said in May it had begun the sale of its infectious-disease unit.

Novartis said the impact of the change would be contained to its site at Emeryville, Calif. It also said its generics unit Sandoz remained committed to collaborating with other companies to help contrast antimicrobial resistance. Because it makes generic drugs, Sandoz isn't directly involved in researching new molecules.

Endpoints News first reported of the company exiting the research fields on Wednesday.

Last month, Novartis said it would spin off its Alcon eye-care unit in a bid to refocus Novartis on drug development. Vasant Narasimhan, who took the top job at Novartis in February, has been vocal about effecting that shift.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com

(END) Dow Jones Newswires

July 12, 2018 09:53 ET (13:53 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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