Shares of pharmaceutical giant Novartis fell sharply on Tuesday, dropping more than 10% as the company announced that its experimental drug del-desiran failed to meet its primary endpoints in a late-stage clinical trial.
The trial was designed to test the treatment for muscle-wasting disorders. According to the company, the results contributed to what investors described as a cumulative disappointment, representing Novartis’s third drug trial setback within a single week.
By mid-morning trading in Zurich, the stock was down approximately 10%, reflecting investor concerns over the string of clinical failures. The sell-off marked a difficult period for the Swiss-based firm, which is currently navigating a challenging landscape for its pipeline development.
The del-desiran failure adds to a series of recent hurdles for the pharmaceutical major, compounding pressure on its broader portfolio as it seeks to replenish its lineup of blockbuster therapies.
It’s wild how quickly sentiment shifts in pharma. One bad day and the stock gets hammered. Makes me question the risk model here.
Wow, double-digit drop over one trial. Did anyone actually see this coming given the other two recent failures?
Three failures in a week? That’s brutal for a company of this size. I’m deeply concerned about their pipeline strategy now.