Novartis investors are increasingly concerned about the company’s deal-making strategy after recent setbacks in drug trials have negatively impacted its stock performance. Following the failure of del-desiran, a drug for muscle-wasting disorders, in a late-stage study, shares plummeted by 11%, erasing nearly $30 billion in market value. This marks the second significant trial failure within days, prompting shareholders to question the viability of last year’s $12 billion acquisition of Avidity and other strategic purchases.
In a related development, a report by the Association for Accessible Medicines reveals that 90% of high-cost biologics set to lose patent protection by 2034 lack lower-cost alternatives in development. This situation threatens to deprive the U.S. healthcare system of approximately $200 billion in potential savings over the next decade, as 118 popular biologic drugs approach patent expiration. The decline in market uptake for newly launched biosimilars has dampened enthusiasm among drugmakers, raising critical implications for future healthcare costs and access.
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