Novartis is said to be abandoning Ionis heart drug after late-stage trial setback
Novartis NVS is halting development of Ionis IONS's heart drug pelacarsen after it failed a late-stage trial. The therapy did not meet its primary endpoint in the Lp(a)HORIZON trial for cardiovascular disease. Novartis will continue testing pelacarsen for calcific aortic valve stenosis. Amgen AMGN, Arrowhead ARWR, and Royalty Pharma RPRX also saw shares drop in September due to the setback.
How this was made
The 30-second read
Why it matters
The trial failure removes a major pipeline asset for both companies, likely triggering share price declines and prompting reassessment of related RNA‑targeting programs.
Market read
The news is material for biotech investors; immediate sell pressure expected for the two companies and possible spillover to peers.
What to watch
Potential for the drug to succeed in the calcific aortic valve stenosis indication remains.
Background
Novartis and Ionis were co‑developing pelacarsen, an RNA‑based therapy aimed at lowering lipoprotein(a). The Phase 3 Lp(a)HORIZON trial missed its primary endpoint, prompting Novartis to halt the atherosclerotic cardiovascular disease program.
Ticker impact
Novartis announced it is largely abandoning pelacarsen after the Phase 3 trial missed its primary endpoint.
likely pressure as investors price in the setback
Phase 3 failure is material for a large pharma; market typically reacts with a sell‑off.
Ionis, the developer of pelacarsen, saw its shares fall after the trial miss was disclosed.
downward pressure as the partnership value is reassessed
Ionis' revenue outlook depends heavily on the Lp(a) program; failure hurts valuation.
Market effects
LPA‑lowering therapies face heightened scrutiny, potentially affecting other RNA‑targeting biotech stocks.
European and US biotech indices may see modest downside.
Limited to biotech sector; broader markets unlikely to be affected.
Counterpoint
If the valve disease study shows positive data, some investors may view the setback as a buying opportunity.
Key entities
- CompanyNovartis
Swiss pharmaceutical giant, ticker NVS.
- CompanyIonis Pharmaceuticals
US biotech focused on RNA therapeutics, ticker IONS.
