Novartis extends selloff as Deutsche Bank cuts on twin drug trial setbacks

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.