Novartis Slumps on Second Straight Drug Setback as Oil Prices Soar
Novartis shares plummeted over 10% on August 8th after the company announced that its experimental drug 'del-desiran' failed to meet primary endpoints in a late-stage clinical trial for muscle-wasting disease. This marked the second consecutive day of setbacks for Novartis, following the failure of its cholesterol-lowering drug 'pelacarsen' to reduce the risk of heart attacks and strokes in a pivotal trial.
The stock's single-day decline set a new record for the company, making it the worst performer in the pan-European STOXX 600 index. The Swiss SMI index also fell between 1.55% and 1.6%, with other pharmaceutical and biotech stocks coming under pressure as well.
The market reaction was fueled by escalating Middle East tensions and elevated oil prices, which have reignited inflation worries and driven up energy costs. Brent Crude futures climbed to near $98 per barrel, while European equities closed slightly lower amid concerns over a wider conflict disrupting global fuel supplies.