Novartis’s Latest Trial Setback Sinks Stock

Live updates

1. 7d ago

   Novartis Stock Plummets Following Phase 3 Trial Failure

   Novartis shares dropped between 10% and 14% after the Phase III HARBOR study for delpacibart etedesiran failed to show statistically significant improvement in patients with myotonic dystrophy type 1. This failure marks the second pipeline setback for the company this week and the third drug trial setback overall. The drug was a centerpiece of a 12 billion dollar Avidity buyout. The failure also impacted Amgen, whose stock fell 10% as the result cast doubt on the entire Lp(a) cholesterol drug class.

   Why it matters

   The HARBOR study targeted a specific genetic muscle wasting disease. Novartis had invested heavily in the Avidity acquisition to bolster this part of its pipeline. The broader market reaction suggests investors fear a systemic failure for similar drug mechanisms.

   What is confirmed

   • The Phase III HARBOR study of delpacibart etedesiran for myotonic dystrophy type 1 did not show statistically significant improvement.
   • Novartis shares declined by at least 10%.
   • The failed drug was part of a 12 billion dollar Avidity buyout.
   • This is the second pipeline setback for Novartis this week.

   Still unconfirmed

   • Novartis is heading for its worst day on record.
   • Novartis stock dropped 14%.
   • Amgen shares fell 10% because the Novartis failure clouds the Lp(a) drug class.

   What to watch next

   • Novartis official statement on the future of the Avidity-acquired pipeline
   • Amgen response to the Lp(a) class failure claims
   • Further FDA guidance on single-study approvals for similar drug classes
   Sources used for this update (8)

   1. CNBC — Pharma major Novartis plummets 10%, heading for worst day on record after three drug trial setbacks
   2. Reuters — Novartis shares sink on second pipeline setback this week
   3. WSJ — Novartis’s Latest Trial Setback Sinks Stock
   4. Fierce Biotech — Novartis’ centerpiece of $12B Avidity buyout flunks ‘crucial’ phase 3 test
   5. Endpoints News — Novartis sinks after second disastrous trial failure, this time of Avidity-acquired drug
   6. www.statnews.com — Pharmalittle: We’re reading about another Novartis trial failure, a Novo Nordisk setback, and more
   7. 247wallst.com — Amgen Falls 10% as Novartis Trial Failure Clouds a Cholesterol Drug Class; NVS Stock Drops 14%
   8. www.marketscreener.com — Novartis Provides Update on Delpacibart Etedesiran Phase III HARBOR Study for the Treatment of Myotonic Dystrophy Type 1
   confidence 90%