Novartis shares plunged more than 12% on Tuesday, trading around CHF112.56, their lowest level since early January and on track for the worst session since March 2020, after its del-desiran drug failed a Phase III trial for myotonic dystrophy type 1 (DM1). The late-stage HARBOR study, which ran 54 weeks across 150 patients, missed its primary endpoint of statistically significant improvement in video hand-opening time compared with placebo.
The drug, also known as delpacibart etedesiran, was acquired through Novartis's $12 billion purchase of Avidity Biosciences. Jefferies analyst Michael Leuchten said del-desiran represented roughly one-third of projected peak sales from that deal and warned the failure goes beyond this failed trial, making the company's growth target above 5% after 2030 hard to hit without further acquisitions. Vontobel removed its estimated $3 billion peak annual sales for del-desiran and cut its Novartis price target to CHF125 from CHF128.
The setback is the third in a week: pelacarsen failed to reduce cardiovascular events in a late-stage trial, and eight rap-cel trials were paused after three patient deaths. Novartis maintained its 2025-2030 sales CAGR guidance of 5-6%, while noting positive late-stage results for remibrutinib in relapsing multiple sclerosis and FDA Priority Review for del-zota in Duchenne muscular dystrophy.
