Novartis' Trial Miss Sends Biotech Stocks Reeling

Novartis' stock price plummeted by 14% after it announced that its phase 3 Harbor trial for delpacibart etedesiran in myotonic dystrophy type 1 had missed its main goal.

The failure of this high-profile trial sent shockwaves through the biotech sector, with Amgen's stock also declining by 9% due to a common phenomenon known as 'read-through.'

Read-through occurs when investors become risk-averse and trim their exposure to entire categories or themes following a major disappointment.