Pharma major Novartis falls nearly 10%, heading for worst day on record after three drug trial setbacks
Shares of Novartis tanked on Tuesday after results from its del-desiran drug trial disappointed investors.
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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