Novartis’ Phase III misses compound Novo’s cardiovascular setback

Novartis reported two Phase III misses over the past five days, while Novo halted two late-stage heart failure trials following the failure of an earlier cardiovascular outcomes study. In both companies’ cardiovascular programs, successful target engagement failed to translate into clinical benefit.

Novartis AG (SIX:NOVN; NYSE:NVS) shares fell 14% in New York Tuesday, the first U.S. trading day after Labor Day, as investors absorbed two Phase III failures disclosed since Friday. The decline wiped more than $42 billion from the company’s market capitalization, marking the stock’s worst day on record...