Why Is Novartis Stock Falling Today? - Novartis (NYSE:NVS), Ionis Pharmaceuticals (NASDAQ:IONS), Royalty

Novartis' pelacarsen, a cholesterol drug targeting lipoprotein(a), failed to reduce cardiovascular events in a clinical trial. The result questions whether lipoprotein(a) is a cause or marker of risk. Full data is pending, and other similar drugs are in trials. The company had high hopes for the drug, which had shown significant reductions in lipoprotein(a) levels.

Novartis' AOC drug delpacibart etedesiran failed to meet primary endpoints in a Phase III trial for myotonic dystrophy type 1. The drug did not show significant improvement over placebo. Novartis shares have declined 14% following this and other recent clinical trial setbacks. The company maintains a 5-6% five-year sales growth target, according to a public statement.

HSBC adjusted ratings for biopharma stocks, citing high multiples and the need for stock-specific catalysts. Novartis was upgraded to Hold with a target price of 110 CHF, while Amgen was downgraded to Hold with a target of $425. AbbVie and Bayer were kept as Buy with raised targets. The changes reflect expectations for upcoming clinical trials and legal outcomes.

Novartis (NVS) shares fell 13% after two failed clinical trials, one for a muscle loss disease drug and another for a cholesterol-targeting drug. Amgen (AMGN) shares dropped 9%, impacting the Dow, as it develops a similar cholesterol drug. Novartis expects 5-6% annual sales growth through 2030. Both companies' stocks were affected by the trial results.

Novartis (NVS) paused eight CAR-T trials after patient deaths, prompting Bristol-Myers Squibb (BMY) to halt its own trials. BMY reported Q2 revenue of $13.0B (+6% YoY) and raised 2026 guidance to $49.0-50.0B. NVS reported Q2 sales of $14.4B (+3%) but reaffirmed guidance. BMY's growth portfolio outperformed, while NVS faces generic competition.

Novartis' Phase 3 trial of del-desiran for myotonic dystrophy type 1 failed to meet its primary endpoint, video hand opening time. The company will review data and consult regulators. Del-desiran is not yet approved, and no treatment timeline is set. Novartis shares fell, along with those of Dyne and Sarepta, which are developing similar therapies.