Novartis Stock Drops After Key Drug Trial Failures
On September 8, 2026, Novartis (NVS) experienced one of its worst trading days on record as shares fell nearly 14%. The decline followed the announcement that del-desiran, an experimental drug for myotonic dystrophy type 1, failed to meet its primary endpoint in a Phase III trial. This was compounded by another recent failure involving heart drug Pelacarsen and setbacks in its CAR-T cancer therapy program due to patient deaths. Del-desiran had been the flagship asset from Novartis's $12 billion acquisition of Avidity Biosciences earlier that year, with high hopes for FDA approval. While some secondary data showed promise, investors were disappointed by the lack of significant improvement in primary measures. Analysts are now questioning whether Novartis can meet its long-term sales growth targets as key patents expire and blockbuster drugs lose exclusivity. The company is under pressure to replenish its pipeline through acquisitions or internal innovation amid a growing perception that it may be overvalued compared to peers.
Tickers: $NVS