Novartis shares fell 9% on Tuesday after the Swiss drugmaker reported disappointing results from three separate drug trials, including a closely watched heart medicine and its experimental treatment del-desiran.
The sell-off wiped billions from the company’s market value and turned attention to the strength of its late-stage pipeline. Investors had expected the trials to deliver evidence supporting some of the firm’s largest bets on future revenue.
Among the disappointments was a study tied to Novartis’ cholesterol program targeting Lp(a), a genetically inherited blood lipid linked to heart attacks and strokes. The failure cast doubt over whether lowering Lp(a) levels reliably translates into fewer cardiovascular events.
That uncertainty carries weight beyond Novartis. Amgen and Eli Lilly are pursuing rival treatments in the same field, each racing to prove that reducing Lp(a) can cut the rate of heart attacks and strokes. The setback raises the stakes for both competitors, who now face fresh scrutiny of the underlying scientific premise.
The Lp(a) market is viewed as a multibillion-dollar opportunity because no approved therapy currently targets the lipid, which affects an estimated one in five people worldwide. A successful drug would open a large untapped patient population.
The second blow came from del-desiran, an experimental treatment whose trial data fell short of investor expectations. The result added to concerns about the depth of Novartis’ near-term growth prospects as several older products approach patent expiry.
The combined setbacks placed pressure on chief executive Vas Narasimhan, who has staked the company’s strategy on innovative medicines after spinning off its generics business. Analysts questioned whether the pipeline can offset revenue lost to competition from cheaper copies of established drugs.
The results also feed a broader debate across the pharmaceutical sector, where firms have poured research funding into cardiovascular and metabolic diseases. Eli Lilly, whose obesity and diabetes franchise has driven surging demand for its weight-loss drugs, is among those betting heavily on the next generation of heart treatments.
Novartis has not indicated whether it will halt the affected programs or pursue additional studies. The company said it would review the data before deciding on next steps.
Trading in Novartis stock stabilized later in the session, though shares remained well below their opening level.