Novartis has taken a $1.9bn writedown on del-desiran, a rare disease drug acquired via its $12bn Avidity Bio Sciences deal. The treatment failed to show statistically significant improvement in a late-stage trial for myotonic dystrophy type 1. CEO Vas Narasimhan remains confident in the broader Avidity acquisition, noting evidence of clinical activity despite the setback.
The impairment was disclosed alongside upgraded full-year profit guidance, driven by strong performance from newer medicines offsetting generic competition to Entresto. Core operating income is now expected to be flat or slightly up, reversing an earlier forecast of decline. Other pipeline candidates, including Kisqali and remibrutinib, have shown positive results recently.
Novartis shares rose 1.9% following the announcement, having gained roughly 20% year-to-date. The company continues to seek replacements for Entresto, which lost US exclusivity last year. The del-desiran charge highlights ongoing pipeline risks, even as Novartis advances other late-stage therapies across oncology and immunology.
Source: Financial Times Companies · Summarized by HeadlinesBriefing