Novartis Exits $800M BioArctic Brain-Delivery Pact After 14 Months

Novartis terminated its agreement with BioArctic, abandoning a neurodegeneration pact potentially worth $772M. The deal, focused on BioArctic's BrainTransporter technology, was discontinued by Novartis, according to BioArctic's release. BioArctic has other partners, including Eli Lilly, which recently paid $30M upfront for a similar deal.

Novartis terminated its collaboration with BioArctic on a brain-delivery technology, according to a Nov. 2 announcement. BioArctic's shares dropped over 7% in early trading. The deal, worth up to $802M, was specific to a Novartis program and did not affect BioArctic's other partnerships, including one with Eli Lilly. BioArctic will recognize remaining unrecognized upfront payment as revenue in 2026. BioArctic reported SEK 1,990M in cash and short-term investments at the end of June.

Novartis' ianalumab showed greater reductions in Sjögren’s disease activity vs. placebo at 48 weeks in two trials, per NEJM. The 300 mg monthly dose improved ESSDAI scores, but no significant differences in symptom scores. Injection reactions were more common with ianalumab.

Novartis and Ionis' heart drug pelacarsen failed to reduce heart attack or stroke risk in a trial, despite cutting Lp(a) levels by 80%. The results challenge the belief that lowering Lp(a) benefits heart health, raising questions for doctors and investors.

Illumina, Tempus AI, and Novartis raised FY26 guidance. Illumina reported $1.13B Q3 revenue, +4.2% YoY, and adjusted EPS of $1.44, +7% YoY. Tempus AI saw 23% YoY revenue growth to $411.5M. Novartis improved profit outlook to flat-to-low-single-digit growth.

Novartis' experimental heart drug, pelacarsen, failed to reduce heart attack and stroke risk in a large trial, despite lowering Lp(a) levels by 80%. Doctors and investors await detailed results. Other drugmakers, like Amgen and Eli Lilly, are developing similar drugs. Novartis' stock dropped 16% following the news. The trial's outcome may impact future Lp(a)-targeting drug development.