Novartis del-desiran fails late-stage trial, shares plunge 10% in worst day on record
Novartis announced on September 8, 2026, that its experimental drug del-desiran failed to meet the primary goal in a Phase III trial for myotonic dystrophy type 1, showing no statistically significant improvement over placebo in hand-opening time. This marks the company's third clinical-trial setback in a week. Shares fell 10%, wiping approximately 24 billion Swiss francs ($29.6 billion) off market value. The drug was acquired through Novartis's $12 billion purchase of Avidity Biosciences.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page reads the event directly, while its address stays stable when the title changes.
- Source updates available; summary pending
Summary pending
Cross-source coverage
Reporting timeline
Novartis Drug Trial Setbacks Raise Questions Over Growth Pipeline and 2030 Targets
Novartis AG has suffered two major late-stage drug trial failures in quick succession, raising investor concerns about its growth pipeline. The experimental drug del-desiran, acquired through the $12 billion purchase of Avidity Biosciences, failed to show statistically significant improvement over placebo for myotonic dystrophy type 1. This came shortly after the cholesterol drug pelacarsen also failed a late-stage study. The setbacks increase pressure on CEO Vas Narasimhan as Novartis seeks to replace revenue from Entresto ahead of patent expirations. Barclays analysts had previously estimated peak annual sales of about $3.1 billion for del-desiran with a 60% probability of success. Despite the failures, Novartis reaffirmed its target of 5%-6% annual sales growth through 2030, though analysts quoted by Reuters view this target as increasingly difficult to achieve. The company still has potential positive catalysts in remibrutinib, which succeeded in a multiple-sclerosis study, with analysts seeing potential billions in peak sales. The failures raise questions about Novartis' acquisition-led pipeline strategy.
Novartis stock falls 14% after second late-stage drug trial failure in days
Novartis (NVS) shares dropped nearly 14% on September 8, 2026, following the failure of its experimental drug del-desiran in a Phase III trial for myotonic dystrophy type 1 (DM1). The drug, acquired through the roughly $12 billion purchase of Avidity Biosciences in February 2026, failed its primary endpoint of improving video hand opening time. This was the second late-stage failure in days, after the heart drug Pelacarsen failed to reduce major cardiac events. Analysts at Jefferies and Barclays questioned whether Novartis can achieve its 5% to 6% annual sales growth target through 2030, given patent expirations on key drugs like Entresto. The company also paused several CAR-T cancer therapy trials after patient deaths. Novartis plans to review full data before deciding next steps for del-desiran.
Read sourceNovartis twin drug setbacks pile pressure on pipeline and CEO
Novartis announced on September 8, 2026, that its experimental drug del-desiran for myotonic dystrophy, a muscle-wasting disease, failed a late-stage Phase III study, marking the second major trial setback in days. The drug was acquired through Novartis's $12 billion acquisition of Avidity. The failure caused Novartis shares to drop about 9%, wiping approximately 24 billion Swiss francs ($29.6 billion) off market value. Analysts had estimated peak annual sales of $3.1 billion for del-desiran. The setback increases pressure on CEO Vas Narasimhan and his M&A strategy to rebuild the pipeline, especially as Novartis faces declining sales of older drug Entresto and patent expiries. The company reiterated its full-year guidance and expects 5-6% compound annual sales growth through 2030. The failure also weighed on other drug developers, with Dyne Therapeutics and Sarepta Therapeutics shares falling 30% and 15.5% respectively in premarket trading. Novartis has now missed two of its three key pipeline readouts this year, placing greater burden on remaining drugs like remibrutinib.
Read sourceShow 5 older updatesHide older updates
Novartis twin drug setbacks pile pressure on pipeline and CEO
Novartis announced on Tuesday that its experimental drug del-desiran for myotonic dystrophy, a muscle-wasting disorder, failed a late-stage Phase III study, marking the second major trial setback in days. The drug, acquired through Novartis's $12 billion purchase of Avidity, failed to show statistically significant improvement over placebo on the primary endpoint. Shares fell about 9%, wiping approximately 24 billion Swiss francs ($29.6 billion) off the company's market value. The failure increases pressure on CEO Vas Narasimhan and his M&A strategy, as investors had counted on del-desiran, heart drug pelacarsen, and anti-inflammatory drug remibrutinib to drive growth amid declining sales of older drug Entresto and upcoming patent expiries. Analysts expressed diminished confidence in the acquisition strategy and noted greater burden on remibrutinib to perform. Novartis reiterated its full-year guidance and 5-6% compound annual sales growth target through 2030. The setback also weighed on other drug developers, with Dyne Therapeutics and Sarepta Therapeutics shares falling in premarket trading.
Novartis shares plunge 10% after del-desiran drug trial failure, worst day on record
Novartis shares plunged 10% on Tuesday, heading for their worst trading day on record, after the pharmaceutical giant announced that its del-desiran drug for myotonic dystrophy type 1 failed in a late-stage Phase III trial. The HARBOR study did not show statistically significant improvement in hand opening time versus placebo. This marks the third drug trial setback for Novartis in a week. Del-desiran was one of three antibody oligonucleotide conjugate therapies acquired through the $12 billion purchase of Avidity Biosciences last year. Novartis said it will evaluate the full dataset and engage with health authorities to determine the next development path. The company's chief medical officer acknowledged the challenges of developing therapies for complex diseases like myotonic dystrophy type 1.
Read sourceNovartis shares plunge 10% after muscle-wasting drug fails late-stage trial
Novartis shares dropped 10% on Tuesday following the announcement that its experimental drug, del-desiran, for muscle-wasting disorder failed in a late-stage clinical trial. This marks the third drug trial setback for the pharmaceutical giant within a week, raising concerns among investors about the company's pipeline and future prospects. The failure of del-desiran, which was being developed to treat a muscle-wasting condition, represents a significant blow to Novartis's research and development efforts. The stock decline reflects market disappointment and uncertainty over the company's ability to bring new treatments to market. The news was reported by CNBC, highlighting the impact on Novartis's valuation and investor sentiment.
Read sourceNovartis suffers third clinical-trial setback in a week as del-desiran fails late-stage study
Novartis experienced its third clinical-trial setback within a week after del-desiran, an experimental treatment for a rare muscle-wasting disease, failed a late-stage study. The announcement marks a significant blow to the Swiss pharmaceutical giant's pipeline, as the drug candidate did not meet its primary endpoints in the Phase 3 trial. This follows two other recent trial failures for Novartis, raising concerns about the company's research and development strategy. The specific rare muscle-wasting disease targeted by del-desiran was not named in the brief statement. The setback could impact Novartis's financial outlook and its position in the competitive rare disease drug market. Further details on the trial results and Novartis's next steps are expected to be disclosed in future announcements.
Read sourceNovartis Drug Del-Desiran Fails Late-Stage Trial for Muscle Disease
Novartis announced on September 8, 2026, that its experimental drug del-desiran failed to meet the primary goal in a late-stage clinical trial for myotonic dystrophy type 1, a neuromuscular disease. The drug, which Novartis acquired through its $12 billion purchase of Avidity Biosciences, did not show a statistically significant improvement over placebo in the time it took patients to open their hand after gripping. Despite missing the primary endpoint, the company reported evidence of clinical activity for other objectives and said safety data were generally consistent with previous studies. Novartis stated it is evaluating the full dataset and will discuss the most appropriate path forward for del-desiran with health authorities. The company reaffirmed its guidance for annual sales growth of 5% to 6% over the 2025-2030 period, indicating the trial failure is not expected to materially impact its overall financial outlook.