Novartis Blockbuster Antibody Drug Fails in Late-Stage Trial
(Bloomberg) — Novartis AG’s drug Cosentyx failed in a late-stage study of patients suffering from inflammation in their blood vessels, a blow to the Swiss company’s efforts to find new uses for the blockbuster medicine.
The therapy, already one of Novartis’s top sellers, did not demonstrate statistically significant improvement in adult patients suffering from giant cell arteritis, an ailment that can cause loss of vision and life-threatening aneurysms, according to a statement Thursday. The drug was compared with placebo, with all trial participants also getting a steroid.
Novartis shares fell slightly in early trading. The stock is up about 2.5% in the last 12 months through Wednesday’s close.
Novartis is seeking new therapies to help offset looming competition this year from cheaper generics for three key drugs, including its top-selling heart medicine Entresto. The drugmaker is also hunting for partnerships and bolt-on deals to help build up its longer-term pipeline, agreeing to buy US biotech Regulus Therapeutics Inc. in April in a transaction that could be valued at up to $1.7 billion.
Cosentyx is already used for treating ailments including psoriasis and the drug is expected to generate about $7 billion in sales this year, according to data compiled by Bloomberg.
Novartis Chief Executive Officer Vas Narasimhan recently said that if Cosentyx proved successful in treating giant cell arteritis, it could bring in another $500 million in revenue annually. The company had listed this advanced trial as one of its largest pipeline events in 2025. It said it plans a full evaluation of the trial data and will share more results at a later date.
It’s a disappointment for patients living with the disease but won’t affect Bank Vontobel’s buy rating on the stock, said analyst Stefan Schneider in a note.
In April, Novartis raised its outlook for the year, driven by medicines for breast cancer, multiple sclerosis and psoriasis.
–With assistance from Amber Tong and Lisa Pham.
(Updates with shares in third paragraph and adds more context throughout.)
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