Amgen Falls 10 Percent After Novartis Cholesterol Trial Failure
Amgen shares fell 10% after a series of clinical trial failures at Novartis triggered a class-wide re-evaluation of experimental cardiovascular drugs.
A cascade of clinical trial failures at Novartis has sent shockwaves across global healthcare markets, dragging down competitors and wiping tens of billions of dollars from pharmaceutical valuations on Tuesday, 8 September 2026. The turbulence began when an experimental cardiovascular medicine failed to prevent heart attacks and strokes, immediately casting a pall over rival drug development programmes and punishing major sector peers.
The rout intensified when Novartis disclosed that its late-stage HARBOR trial evaluating delpacibart etedesiran, commonly known as del-desiran, for myotonic dystrophy type 1 missed its primary endpoint of improving video hand-opening time compared to a placebo.
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The shockwaves hit competitors with disproportionate force. Yahoo Finance healthcare coverage noted that Amgen shares dropped 10 percent to trade at $394.38 at midday on Tuesday, 8 September 2026, interrupting a 23 percent year-to-date gain. Because Amgen occupies a major position in the Dow Jones Industrial Average, the sell-off exerted downward pressure on the broader index alongside health care funds like the Health Care Select Sector SPDR ETF. Eli Lilly shares similarly retreated 2 percent to $1,124.77, reflecting sector-wide apprehension regarding rival cardiovascular treatments.
The market panic stems directly from the collapse of the underlying scientific hypotheses for whole drug classes. Late last week, Novartis announced that pelacarsen, an experimental heart drug co-developed with Ionis Pharmaceuticals, lowered lipoprotein(a) levels but failed its primary composite endpoint covering cardiovascular death, non-fatal heart attack, non-fatal stroke, and urgent coronary revascularization in an 8,323-patient Phase III study. Citi analysts warned that the broader lipoprotein(a) hypothesis itself may now be viewed as weakened, placing heightened scrutiny on Amgen's competing candidate, Olpasiran, which is currently undergoing the Phase III OCEAN(a)-Outcomes trial.
| Company | Ticker | Single-Day Share Movement | Primary Catalyst / Affected Asset |
|---|---|---|---|
| Novartis | NYSE:NVS | Down 11% to 14% | Pelacarsen & del-desiran late-stage trial failures |
| Amgen | NASDAQ:AMGN | Down 10% | Class-wide Lp(a) pipeline risk revaluation |
| Eli Lilly | NYSE:LLY | Down 2% | Read-through concerns on rival cardiovascular programmes |
The dual setbacks place immense pressure on Novartis Chief Executive Officer Vas Narasimhan and his aggressive mergers and acquisitions strategy. The Globe and Mail reported that del-desiran served as the crown jewel of Novartis's $12 billion acquisition of Avidity Biosciences. Analysts at Barclays estimated that pelacarsen and del-desiran collectively represented roughly $5 billion in risk-adjusted peak sales opportunities. With both programmes stumbling, financial institutions have questioned whether Novartis can successfully offset impending patent expirations on legacy blockbusters like Entresto and Cosentyx.
Jefferies equity research noted that management's previously stated target of achieving 5 percent to 6 percent compound annual sales growth between 2025 and 2030 will likely be perceived as unattainable without further dealmaking, which itself now faces heightened investor skepticism. Nevertheless, Novartis reiterated its full-year guidance during the disclosures. Shreeram Aradhye, president of development and chief medical officer at Novartis, maintained that developing therapies for complex conditions remains inherently challenging and that setbacks form a natural part of scientific progress.
Amid the carnage, analysts pointed to isolated bright spots in the Swiss pharma giant's pipeline. A late-stage trial for remibrutinib demonstrated a clinically meaningful delay in disability progression for relapsing multiple sclerosis patients, providing some counterbalance to the negative news. However, market observers emphasized that a single success is insufficient to reverse bearish sentiment across the broader portfolio.
For Amgen, the sell-off created a bizarre divergence. On the exact morning its stock dropped due to the Novartis cardiovascular miss, Amgen announced that its Phase 3 DeLLphi-305 study met its primary endpoint, showing a statistically significant improvement in overall survival for IMDELLTRA. Yet, the market chose to prioritize class-wide pipeline re-ratings over immediate oncology readouts.
Market participants must now navigate heightened volatility as they await further clarity from cardiology leaders. Traders and investors are watching for upcoming industry conferences and regulatory updates regarding whether the halted programmes can be salvaged or if entirely new clinical pathways will be required.
