Big pharma eyes Australian biotech as $300b patent cliff looms

Novartis and Ionis' RNA drug, pelacarsen, failed to reduce heart attack, stroke, and death risks in a Phase 3 trial, despite lowering Lp(a) levels. Novartis stated the results were disappointing but may inform future cardiovascular approaches. Analysts noted the failure raises questions about similar therapies and potential impacts on ongoing trials. The drug was expected to generate significant revenue if successful.

Novartis and Ionis Pharmaceuticals reported that their experimental heart drug, pelacarsen, failed to reduce the risk of major heart attacks and strokes in a late-stage trial. The drug, targeting genetically inherited cholesterol Lp(a), lowered Lp(a) levels but did not meet its primary endpoint. Novartis shares fell 5%, and Ionis shares dropped 12% in aftermarket trading. The companies plan to present full trial data at an upcoming medical congress.

Novartis' phase III Lp(a)HORIZON trial of pelacarsen failed to meet its primary endpoint, as the drug did not reduce cardiovascular events compared to placebo, despite lowering Lp(a) levels. The company acknowledged the results were not as hoped but may advance scientific understanding. NVS shares closed at $159.99, down 1.90%, and rose to $162.90 in afterhours trading.

Novartis reported that its Phase III trial for pelacarsen failed to meet the primary endpoint of reducing cardiovascular events. While the drug lowered lipoprotein (a) levels, it did not significantly improve outcomes compared to placebo. Elevated Lp(a) is a risk factor for cardiovascular disease affecting 20% of the global population, with no approved treatments.

Novartis (NYSE: NVS) announced its Phase 3 Lp(a)HORIZON trial failed to meet the primary endpoint of reducing cardiovascular events. The company offers a 2.96% dividend yield with a 71% payout ratio, trading 22.0% above its GF Value™ of $131.15. Novartis has a GF Score™ of 82/100, indicating strong financial health. Institutional investors show mixed confidence, with 10 trimming positions and 6 adding in recent quarters.

Bristol Myers Squibb and Novartis halted clinical trials for CAR-T therapies targeting autoimmune diseases due to safety concerns. Bristol Myers paused a zola-cel study after detecting ICANS cases, while Novartis suspended rap-cel trials following three patient deaths. Both companies are investigating the issues, with Bristol Myers reporting non-fatal effects and Novartis analyzing data. The trials aimed to treat diseases like lupus and rheumatoid arthritis, with initial results showing promise.