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Novartis’s failed trial for cholesterol drug leads to broad biopharma stock selloff

Along with several other drugmakers, Novartis has bet that lowering Lp(a) will cut the risk of sometimes fatal cardiovascular events.

Novartis’s failed trial for cholesterol drug leads to broad biopharma stock selloff

Novartis announced on Tuesday that its experimental drug for a muscle-wasting disorder failed a late-stage study, marking the second major setback in a short period. The drug, del-desiran, acquired through Novartis's $12 billion acquisition of Avidity, experienced this failure while being tested in myotonic dystrophy, a condition without approved treatments.

Analysts and shareholders expressed concern over the impact of this setback on Novartis's pipeline and CEO Vas Narasimhan's M&A strategy. The news led to a significant 9% drop in Novartis's shares, signaling one of its worst trading days. This recent failure adds pressure on Novartis to secure other drugs in development and uphold its full-year growth expectations.

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