Novartis CEO keeps faith in Avidity deal despite taking $1.9B hit from del-desiran fail
Novartis CEO Vas Narasimhan remains confident in the company's $12 billion acquisition of Avidity Biosciences despite a $1.9 billion impairment charge stemming from the Phase 3 failure of del-desiran. The HARBOR trial in myotonic dystrophy type 1 missed its primary endpoint for hand function improvement. Despite the setback and overall drug trial setbacks totaling $2.2 billion, Novartis lifted its annual profit guidance. The company noted signals in secondary endpoints and is evaluating another pivotal study for the treatment.
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- ✓ Novartis CEO Vas Narasimhan maintains confidence in the $12 billion Avidity Biosciences acquisition.
- ✓ The company recorded a $1.9 billion partial impairment charge due to the del-desiran failure.
- ✓ The Phase 3 HARBOR trial in myotonic dystrophy type 1 missed its primary endpoint assessing hand function improvement.
- ✓ Novartis raised its annual profit guidance despite the trial setbacks.
What changed
Novartis recorded a $1.9 billion impairment charge in its third-quarter results following the failure of the HARBOR trial.
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Novartis CEO Keeps Faith in Avidity Deal Despite $1.9B Hit
Novartis CEO Vas Narasimhan remains confident in the company's $12 billion acquisition of Avidity Biosciences despite a $1.9 billion impairment charge stemming from the Phase 3 failure of del-desiran. The HARBOR trial in myotonic dystrophy type 1 missed its primary endpoint for hand function improvement. Despite the setback and overall drug trial setbacks totaling $2.2 billion, Novartis lifted its annual profit guidance. The company noted signals in secondary endpoints and is evaluating another pivotal study for the treatment.
Why it matters
The impairment reflects additional time and resources required for further development following the clinical trial miss. Despite the financial hit to third-quarter results, executive leadership maintains its long-term revenue targets and expresses satisfaction with the high-profile acquisition. The situation highlights the financial risks inherent in large-scale biopharma takeovers when lead candidates stumble in late-stage testing.
What is confirmed
- Novartis CEO Vas Narasimhan maintains confidence in the $12 billion Avidity Biosciences acquisition.
- The company recorded a $1.9 billion partial impairment charge due to the del-desiran failure.
- The Phase 3 HARBOR trial in myotonic dystrophy type 1 missed its primary endpoint assessing hand function improvement.
- Novartis raised its annual profit guidance despite the trial setbacks.
What to watch next
- Decisions by Novartis on whether to advance a new pivotal study for del-desiran based on secondary and exploratory measures.
confidence 100%Sources used for this update (10)
- www.fiercebiotech.com — Fierce Biotech News & Reports
- Fierce Biotech — Novartis CEO keeps faith in Avidity deal despite taking $1.9B hit from del-desiran fail
- Reuters — Novartis books $2.2 billion hit from drug trial setbacks, but lifts guidance
- FirstWord Pharma — Novartis lifts annual profit guidance despite $1.9B hit from del-desiran failure
- Financial Times — Novartis takes $1.9bn writedown on key drug after blockbuster Avidity acquisition
- Fierce Pharma — Novartis CEO unfazed by high-profile clinical failures, maintains long-term revenue goal
- WSJ — Novartis Raises Guidance Despite Drug-Trial Setbacks Hitting Profit
- www.biospace.com — Novartis faces $1.9B hit from Avidity fail but maintains ...
- pharmaphorum.com — Novartis takes $1.9bn hit from Avidity takeover in Q3
- www.talk.bio — Novartis stands by Avidity deal after $1.9 billion del ...
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