Novartis reported a $1.9 billion partial impairment of its del-desiran asset following the Phase III HARBOR trial's failure to meet its primary endpoint of video hand-opening time in patients with myotonic dystrophy type 1.
The company also recorded a separate $300 million write-off associated with pelacarsen, which failed to demonstrate a reduction in cardiovascular events despite lowering lipoprotein(a).
These charges contributed to a 61% decline in third-quarter operating income at constant currencies, although core operating income increased 10% and Novartis raised its full-year core earnings guidance.
The clinical setbacks occurred before October 27; the new development is their financial recognition and the company's updated assessment of the programs. Novartis
Primary source: Novartis Q3 2026 Official Results — October 27
Why it matters strategically
Del-desiran was one of the principal late-stage assets obtained through Novartis's approximately $12 billion acquisition of Avidity BioSciences.
Its failure to meet the pivotal endpoint introduces uncertainty about the value assigned to the acquired clinical portfolio.
However, the failure of a primary endpoint does not necessarily establish that the treatment has no biological activity.
Novartis reported evidence of clinical activity in secondary endpoints and exploratory analyses.
This creates a difficult development decision.
The company must determine whether the evidence supports another trial, a modified clinical-development strategy, regulatory consultation, or termination.
The answer depends on more than the accounting impairment.
