Why is Novartis stock tumbling today?

Novartis India agreed to buy Pfizer's Minipres and Minipress trademarks in India for $132m, adding a hypertension brand to its cardiovascular range. The deal includes intellectual property rights and covers trademarks registered in India. Novartis India reported Minipress XL's revenue at Rs2.28bn for the 12 months ending July 2026, with a 6.3% CAGR over four years.

Novartis shares fell 10% after its experimental neuromuscular drug, del-desiran, failed to meet the primary goal in a late-stage trial. This is the second trial failure in a week for the company, raising concerns about its growth prospects. Novartis acquired del-desiran through its $12 billion purchase of Avidity Biosciences in February. The company reiterated its sales growth guidance for 2025-30.

Novartis shares fell 8.9% after its del-desiran drug failed a late-stage trial for muscle-wasting disorder, marking the third setback in a week. The company also faces doubts about its growth targets and the $12B Avidity acquisition, according to analysts.

European shares fell 0.2% as oil prices rose near $100/bbl, sparking inflation concerns. Novartis dropped 8.8% after two drug trial failures. Sandoz gained 2.9% on sales growth targets. Poste Italiane's offer for Telecom Italia impacted its shares.

Novartis' cholesterol drug pelacarsen, developed with Ionis, failed to improve cardiovascular outcomes in a late-stage trial, despite reducing harmful cholesterol. Novartis stock fell 3%. Amgen and Eli Lilly, developing rival treatments, also saw stock declines. Analysts note the setback raises risks for the multibillion-dollar Lp(a) treatment market. Novartis faces patent expirations, and the trial's impact extends beyond the company.

Novartis's experimental drug delpacibart etedesiran (del-desiran) for myotonic dystrophy type 1 failed to meet the main goal in a late-stage trial, missing statistical significance on the primary endpoint. The study showed some clinical activity in other measures, and safety findings were consistent with prior data. Novartis will evaluate the full dataset and consult health authorities to determine next steps. The company maintains its 5-6% sales CAGR guidance for 2025-2030.