Novartis Faces Another Pipeline Setback as ALS Drug Fails Mid-Stage Trial
Novartis AG (NYSE:NVS) has discontinued development of its experimental drug VHB937 for amyotrophic lateral sclerosis (ALS), after it failed to meet both primary and secondary endpoints in a Phase II trial involving 251 patients. The setback adds to recent clinical failures, including del-desiran in myotonic dystrophy and pelacarsen in cardiovascular disease. Despite the setbacks, Novartis is expected to absorb this loss with limited immediate financial impact due to VHB937's early-stage status and lack of commercial revenue. Strong sales from products like Kisqali, Kesimpta, Scemblix, Pluvicto, and Leqvio helped support Q2 2026 results, while the company reaffirmed its full-year outlook for low-single-digit growth. The broader concern lies in cumulative pipeline attrition affecting Novartis' ability to replace aging revenue streams. Entresto sales dropped significantly due to generic competition, and upcoming patent expiries pose additional risks.
Tickers: $NVS
Topics: ALS drug development failure R&D pipeline TREM2 protein