Novartis CEO Vas Narasimhan said the company remains confident in its $12 billion Avidity Biosciences acquisition, calling del-desiran’s Phase 3 failure a “bump” in pioneering research.
The HARBOR trial in myotonic dystrophy type 1 (DM1) missed its primary endpoint, which assessed improvement in hand function. Novartis cited signals in secondary and exploratory measures and is considering another pivotal study.
Novartis recorded a $1.9 billion partial impairment charge on del-desiran, reflecting the extra time and resources likely needed to develop it further. The company has not abandoned the drug.
Narasimhan said the setback does not change Novartis’ confidence in antibody-oligonucleotide medicines or its preference for bolt-on acquisitions, generally under $2 billion.
The Avidity acquisition also brought other experimental medicines:
del-brax for facioscapulohumeral muscular dystrophy is in Phase 3, and del-zota for Duchenne muscular dystrophy has been filed for regulatory approval.
Despite the charge, Novartis raised its full-year core operating-income outlook, according to reports on its third-quarter results.
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