Biopharma stocks fall after Novartis trial failure
Shares of Switzerland’s Novartis, Amgen, Ionis Pharmaceuticals and other biopharmaceutical companies declined after the failure of a trial of the drug pelacarsen. The Phase III study showed that the drug, developed to lower lipoprotein(a), or Lp(a), did not reduce the risk of major cardiovascular events, including heart attacks and strokes, MarketWatch reports.
Novartis reported the study results late Friday and plans to release detailed data later. Pelacarsen lowered levels of Lp(a), a cholesterol-carrying particle associated with an increased risk of such events. However, lowering Lp(a) did not lead to a reduction in these risks.
Stock market reaction
During trading on Tuesday, Switzerland-listed Novartis shares lost 10.2%. Ionis Pharmaceuticals shares fell by about 7.2% at the market open. In 2023, Novartis licensed pelacarsen from Ionis for an upfront payment of $60 million.
The decline spread to other developers of therapies targeting Lp(a). Shares of Amgen, which is conducting a Phase III trial of its own candidate, fell 8.2%. Eli Lilly shares lost about 2.7%; the company has two anti-Lp(a) drugs in Phase III studies. Shares of NewAmsterdam, which is developing a therapy to lower LDL-C, fell 6.7%.
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Doubts about the approach
The failure of pelacarsen raised questions about whether lowering Lp(a) can be an effective way to reduce the risk of cardiovascular events. Jefferies analyst Akash Tewari told investors that assessments of Lp(a) as a therapeutic target had previously been mixed. At the same time, BMO Capital Markets analyst David Lebovitz suggested that a different outcome could be possible for a drug providing deeper, more consistent and longer-lasting Lp(a) reduction.
According to the Family Heart Foundation, approximately one in five people in the United States has elevated Lp(a) levels. This indicator is hereditary, and diet or statin use rarely helps lower its level. Pelacarsen belongs to antisense oligonucleotides, while Amgen and Eli Lilly are developing drugs based on small interfering RNA.
Separately, Novartis reported the failure of another Phase III study — an experimental treatment for myotonic dystrophy type 1, obtained after the $12 billion acquisition of Avidity Biosciences. Shares of Sarepta Therapeutics, which develops siRNA therapies for two types of muscular dystrophy, fell 11.5%.
