Novartis shares tumble after late-stage failure of Avidity-acquired drug

Novartis announced that its late-stage trial of a drug it acquired from Avidity did not meet its primary endpoints. The setback follows a recent disappointment in a heart disease study, adding pressure on the Swiss group.

The company had hoped the new data would provide a turnaround after the earlier failure, but the results were deemed unsuccessful by the trial investigators. No details on the specific indication or patient numbers were disclosed.

Investors reacted sharply, with the stock price falling on the news. Analysts noted that two consecutive trial disappointments could delay the company’s pipeline momentum and affect upcoming earnings expectations.

Novartis has not indicated any immediate changes to its development strategy, but the back-to-back failures highlight the challenges of advancing late-stage candidates in a competitive market.