Novartis Shares Fall After Heart Drug Misses Target in Late-Stage Trial
Novartis shares tumbled after its experimental drug del-desiran missed its primary goal in a late-stage trial for myotonic dystrophy type 1, marking the third clinical trial failure for the Swiss drugmaker within a single week. The losses followed the disappointing performance of the cardiovascular drug pelacarsen, which successfully lowered lipoprotein(a) but failed to reduce heart attacks, strokes, or cardiovascular deaths in a large late-stage study involving more than 8,000 patients. Partner Ionis Pharmaceuticals also faced sharp share drops from the trial results, while major shareholders called for board oversight changes.
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- ✓ Novartis shares tumbled after its experimental drug del-desiran missed its primary goal in a late-stage trial for myotonic dystrophy type 1.
- ✓ The cardiovascular drug pelacarsen successfully lowered lipoprotein(a) but failed to reduce heart attacks, strokes, or cardiovascular deaths in a large late-stage study involving more than 8,000 patients.
- ✓ Artisan Partners publicly called for a shake-up of the Swiss drugmaker's board to improve oversight of its acquisitions after shares suffered an 11 percent one-day drop.
What changed
Novartis experienced an 11 percent one-day drop wiping out nearly $30 billion in market value following its recent clinical trial setbacks.
Live updates
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Novartis Shares Fall After Clinical Trial Failures
Novartis shares tumbled after its experimental drug del-desiran missed its primary goal in a late-stage trial for myotonic dystrophy type 1, marking the third clinical trial failure for the Swiss drugmaker within a single week. The losses followed the disappointing performance of the cardiovascular drug pelacarsen, which successfully lowered lipoprotein(a) but failed to reduce heart attacks, strokes, or cardiovascular deaths in a large late-stage study involving more than 8,000 patients. Partner Ionis Pharmaceuticals also faced sharp share drops from the trial results, while major shareholders called for board oversight changes.
Why it matters
The recent clinical setbacks have triggered shareholder pressure, with Artisan Partners publicly demanding a shake-up of the Novartis board to improve oversight of corporate acquisitions. The failure of pelacarsen to reduce cardiovascular events despite lowering lipoprotein(a) has also prompted broader cardiology soul-searching regarding preventive drug targets. Meanwhile, partner Ionis Pharmaceuticals saw its own shares drop following the trial outcomes.
What is confirmed
- Novartis shares tumbled after its experimental drug del-desiran missed its primary goal in a late-stage trial for myotonic dystrophy type 1.
- The cardiovascular drug pelacarsen successfully lowered lipoprotein(a) but failed to reduce heart attacks, strokes, or cardiovascular deaths in a large late-stage study involving more than 8,000 patients.
- Artisan Partners publicly called for a shake-up of the Swiss drugmaker's board to improve oversight of its acquisitions after shares suffered an 11 percent one-day drop.
What to watch next
- Potential structural or board changes at Novartis following shareholder pressure from Artisan Partners.
- Further developments in the clinical pipelines of Novartis and partner Ionis Pharmaceuticals.
confidence 100%Sources used for this update (14)
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Novartis Shares Plunge After Third Clinical Trial Failure
Novartis shares tumbled after its experimental drug del-desiran missed its primary goal in a late-stage trial for myotonic dystrophy type 1. This setback marked the third clinical trial failure for the Swiss drugmaker within a single week. It follows the disappointing performance of the cardiovascular drug pelacarsen, which successfully lowered lipoprotein(a) but failed to reduce heart attacks, strokes, or cardiovascular deaths in a large late-stage study involving more than 8,000 patients. Partner Ionis Pharmaceuticals also faced sharp share drops from the trial results.
Why it matters
These clinical failures compound pressure on company leadership following earlier setbacks in late-stage testing. A major shareholder has already demanded a board shake-up in response to the deteriorating trial record. Partners Ionis Pharmaceuticals and Amgen also experienced stock turbulence from the pipeline setbacks.
What is confirmed
- Novartis shares fell about 10% after its experimental drug del-desiran failed to meet its primary goal in a late-stage trial for myotonic dystrophy type 1.
- The pelacarsen trial enrolled more than 8,000 patients and failed to reduce heart attacks, strokes and related cardiovascular events.
- Pelacarsen successfully lowered lipoprotein(a) levels.
Still unconfirmed
- A major Novartis shareholder has demanded a board shake-up following recent clinical trial failures.
What to watch next
- Further announcements regarding leadership or board changes at Novartis.
- Additional financial disclosures from partner companies Ionis Pharmaceuticals and Amgen.
confidence 90%Sources used for this update (5)
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- finance.yahoo.com — Novartis (NVS) and Ionis (IONS)’ Big Cholesterol Bet Comes Up Short in Late-Stage Trial
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- finance.yahoo.com — Novartis (NVS) Suffers its Third Drug Trial Setback in a Week, and its Worst Trading Day in Years
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Novartis Shareholder Demands Board Overhaul After Major Drug Failures
A major Novartis shareholder has demanded a board shake-up following recent clinical trial failures for the Swiss drugmaker. Novartis previously announced that its heart drug pelacarsen missed its primary goal in a large late-stage clinical trial, failing to reduce heart attacks, strokes, or cardiovascular deaths despite successfully lowering lipoprotein(a). This setback occurred alongside a missed primary endpoint for the muscle-wasting disorder drug del-desiran, putting pressure on company leadership and causing sharp share drops for partners Ionis Pharmaceuticals and Amgen.
Why it matters
Cardiologists had widely anticipated that pelacarsen would become a major new tool for preventing cardiac events. The consecutive trial misses for two high-profile therapeutics have damaged investor confidence in the pharmaceutical pipeline and prompted demands for corporate governance changes at the highest levels of the Swiss drugmaker.
What is confirmed
- A major shareholder in Novartis has called for a shake-up of the Swiss drugmaker.
- Novartis announced that a drug widely expected to become a major weapon against heart attacks has failed in a large clinical trial.
What to watch next
- Response from Novartis leadership regarding the shareholder demand for a board shake-up
- Further market reactions and partner updates from Ionis Pharmaceuticals and Amgen
confidence 100%Sources used for this update (4)
- medicalxpress.com — Cardiologists expected this new drug to prevent heart attacks—so why did it fail?
- finance.yahoo.com — Exclusive-Major Novartis shareholder calls for board shake-up after drug trial setbacks
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Novartis Shares Plunge After Heart Drug Fails to Reduce Cardiovascular Events
Novartis shares fell between 13.5% and 14% after its heart drug pelacarsen failed a phase 3 trial. While the drug successfully lowered lipoprotein(a), a genetic risk factor, it did not reduce the occurrence of strokes, heart attacks, or cardiovascular deaths. This failure coincides with a miss on the primary endpoint for del-desiran, a muscle-wasting disorder drug linked to a 12 billion dollar deal. The combined setbacks have pressured Novartis leadership and triggered share price drops for partners Ionis Pharmaceuticals and Amgen.
Why it matters
The failure of pelacarsen creates uncertainty regarding the viability of the Lp(a) cholesterol drug class. Novartis is facing simultaneous pipeline pressure due to the failure of del-desiran, which now leaves two Avidity programs to justify a takeover. These results contributed to a broader decline in health-care sector stocks.
What is confirmed
- Novartis shares fell between 13.5% and 14%.
- Pelacarsen lowered lipoprotein(a) but failed to reduce cardiovascular deaths, strokes, or heart attacks.
- The drug del-desiran missed its primary endpoint.
Still unconfirmed
- Ionis Pharmaceuticals has a mean price target of 84.24 dollars according to FactSet analysts.
What to watch next
- Further analyst price target adjustments for Ionis Pharmaceuticals.
confidence 90%Sources used for this update (5)
- finance.yahoo.com — Amgen's Olpasiran May Still Show Heart-Risk Reduction Despite Novartis Miss, UBS Says
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- www.marketscreener.com — BofA Adjusts Price Target on Ionis Pharmaceuticals to $91 From $93
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Novartis Heart Drug Pelacarsen Fails Phase 3 Trial
Novartis shares fell 14% after its Lp(a) drug, pelacarsen, failed to lower cardiovascular risk in a phase 3 trial. The failure impacted partners and competitors, causing Ionis Pharmaceuticals shares to drop 13.1% to $50 and Amgen shares to fall 10%. This result raises questions about the viability of the emerging Lp(a) cholesterol drug class. The setback follows another late-stage study failure for a Novartis muscle-wasting disorder drug, del-desiran, increasing pressure on the company's pipeline and leadership.
Why it matters
Lp(a) drugs target a specific type of cholesterol to reduce heart disease risk. This failure creates uncertainty for other companies developing similar medicines. The timing coincides with a second clinical setback for Novartis within a few days.
What is confirmed
- The Novartis Lp(a) drug pelacarsen failed to lower cardiovascular risk in a phase 3 trial.
- Novartis stock dropped 14% following the trial results.
- Ionis Pharmaceuticals shares fell 13.1% to $50.
- Amgen shares fell 10% as the trial results clouded the cholesterol drug class.
- Novartis reported a second late-stage study failure for an experimental muscle-wasting disorder drug called del-desiran.
What to watch next
- Further analysis of the pelacarsen trial data to determine why it missed the primary endpoint
- Company statements from Novartis CEO regarding pipeline pressure
- Amgen's response to the impact of the Novartis failure on its own Lp(a) program
confidence 100%Sources used for this update (10)
- The New York Times — Another Heart Drug Fails, Shocking Cardiologists
- fiercebiotech.com — Novartis Lp(a) drug fails to lower cardiovascular risk in closely watched ph. 3 trial
- BioPharma Dive — Novartis, Ionis drug failure spurs questions about an emerging class of heart medicines
- Reuters — Novartis cholesterol setback tests hopes for emerging heart disease drugs
- WSJ — Novartis Shares Fall After Heart Drug Misses Target in Late-Stage Trial
- FirstWord Pharma — Novartis' pelacarsen fails critical cardiovascular test
- finance.yahoo.com — Amgen Shares Fall as Investors Assess Novartis Lp(a) Trial Result and BMO Downgrade
- finance.yahoo.com — Ionis Pharmaceuticals Shares Fall After Pelacarsen Phase 3 Trial Misses Primary Endpoint
- 247wallst.com — Amgen Falls 10% as Novartis Trial Failure Clouds a Cholesterol Drug Class; NVS Stock Drops 14%
- wsau.com — Novartis twin drug trial setbacks pile pressure on pipeline, CEO
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