Novartis Stock Drops After Key Drug Trial Failures
On Sept. 8, 2026, Novartis (NVS) experienced one of its worst trading days on record as shares fell nearly 14% following the failure of a key late-stage trial for del-desiran, an experimental treatment for myotonic dystrophy type 1. This setback came just days after another major drug candidate failed in trials, compounding investor concerns about Novartis' pipeline and growth prospects. Del-desiran was acquired as part of a $12 billion deal with Avidity Biosciences earlier that year and had received FDA Fast Track and Breakthrough Therapy designations. While the primary trial endpoint showed no improvement over placebo, some secondary measures were encouraging. However, this did little to reassure investors who are now reevaluating Novartis' ability to meet its long-term sales growth targets. Analysts from Jefferies and Barclays have questioned whether Novartis can achieve 5%–6% annual sales growth through 2030 amid patent expirations for key drugs like Entresto. The company may also face increased pressure to pursue costly acquisitions to replenish its pipeline, which could dilute shareholder value.
Tickers: $NVS
Topics: drug trial failure Novartis stock decline