Shares of Swiss pharmaceutical giant Novartis dropped 3.3% on Monday morning following a disappointing result from a pivotal late‑stage trial of its cholesterol‑lowering drug pelacarsen. The study, which enrolled patients with elevated Lp(a) – an inherited, cholesterol‑related risk factor – failed to demonstrate a reduction in heart attack or stroke risk.
Study outcome and market reaction
The trial, described by Novartis as a large, late‑stage investigation, was closely watched by investors and analysts because pelacarsen had been projected to become a blockbuster therapy. Analysts had previously modeled peak annual sales between $3 billion and $6 billion. The negative result sent the company’s shares down 3.3% in early trading, reflecting renewed concerns about the firm’s ability to deliver on its high‑growth pipeline.
Implications for competitors and the broader Lp(a) market
The setback also raises the bar for rival Lp(a)‑lowering candidates under development at Amgen and Eli Lilly, both of which are conducting their own late‑stage trials. With no approved targeted treatments for high Lp(a) currently on the market, the failure underscores the scientific and regulatory challenges of bringing a new therapy to patients.
Pressure on Novartis’s other pipeline assets
In addition to pelacarsen, Novartis is awaiting data from an experimental muscular‑dystrophy drug, del‑desiran, which the company acquired for $12 billion last year. The recent disappointment adds urgency to the upcoming read‑outs, as investors look for a positive catalyst to offset the current headwinds.
Company response
Novartis issued a statement acknowledging the trial outcome and reaffirming its commitment to advancing innovative treatments for serious diseases. The company emphasized that the data will help refine its scientific approach and guide future development efforts.
Analyst perspective
While the immediate market reaction was negative, some analysts noted that the broader Novartis portfolio remains diversified, with strong performance in oncology, ophthalmology, and other therapeutic areas. They suggested that the company’s long‑term outlook may still be resilient, provided upcoming trial data deliver encouraging results.
Investors and industry observers will be watching the next set of data releases closely, as they could determine whether Novartis can regain momentum and continue to deliver value for shareholders.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
