Novartis Pelacarsen Trial Ends in Disappointment

Novartis AG has suffered its second major clinical trial setback in as many weeks. The company's potential blockbuster heart disease drug, pelacarsen, failed to deliver significant results in late-stage studies.

The trial aimed to reduce lipoprotein(a) levels, a cardiovascular disease risk indicator largely determined by genetic factors that affects approximately one-fifth of the population. However, despite lowering these levels, pelacarsen did not significantly reduce cardiovascular deaths, heart attacks, or strokes compared to the placebo group.

This failure has dealt a significant blow to industry expectations that the drug would open new pathways for cardiovascular disease prevention. The market's negative reaction was evident, with Novartis' U.S.-listed shares falling over 7% in after-hours trading on Friday.

Affected by this news, Amgen (AMGN.US), which is developing similar heart drugs, saw its stock drop nearly 6% in after-hours trading on the same day. Jefferies analyst Michael Leuchten noted that these results raise questions about whether any therapy that lowers lipoprotein(a) can ultimately deliver clinical cardiovascular benefits.

However, he also suggested that the market's negative reaction may be overstated, as even if the trial had succeeded, questions would still remain regarding which patients would truly benefit and how the drug would compete with rivals.