Novartis stock plummeted 10.9% following the failure of its del-desiran trial, triggering a sector-wide selloff in muscular-disease stocks including Sarepta and Dyne Therapeutics.
Novartis shares plunged 10.9% on its worst trading day after del-desiran failed a late-stage trial, erasing about $32 billion in market value amid two other pipeline setbacks.
Sarepta shares were pushed lower on read-through risk that the failed Novartis myotonic dystrophy program raises broader doubts about similar muscular-disease drug prospects.
Dyne Therapeutics shares also fell as the Novartis del-desiran failure increased perceived risk across the muscular-disease therapy space.
Novartis shares suffered their worst trading day on record, falling 10.9% after the experimental drug del-desiran failed a late-stage trial for myotonic dystrophy. This setback, the third in a single week, erased $32 billion in market value and cast doubt on the company's long-term growth strategy. Despite the clinical failures, management reaffirmed its 5% to 6% annual sales growth target through 2030, pinning future hopes on the success of its remibrutinib pipeline.
The shares fell 10.9% after the company's experimental drug del-desiran failed to meet its primary endpoint in a late-stage trial, marking the third major clinical setback for the firm in one week.
The failure created negative sentiment across the muscular-disease therapy sector, causing shares of Sarepta Therapeutics and Dyne Therapeutics to decline due to concerns about similar drug development programs.