Novartis lifts profit outlook despite $1.9 billion hit from failed trial
Novartis upgraded its 2026 profit guidance to flat or low-single-digit growth, even though a Phase III study of del-desiran triggered a $1.9 billion impairment charge.
Novartis announced that its 2026 core operating income will be flat or grow at a low-single-digit rate, improving on a prior outlook of a low-single-digit decline. The company’s net income fell 70% to $1.2 billion, and operating income dropped 59% to $1.8 billion, largely because of higher R&D spending and a $1.9 billion partial impairment on the del-desiran asset. On a core basis, operating income increased 11% to $6.0 billion and earnings per share rose 9% to $2.46.
Net sales rose 4% to $14.5 billion, driven by a 37% jump in Kisqali and a 22% rise in Kesimpta, though generic competition trimmed overall growth. The Phase III HARBOR study of del-desiran did not achieve its primary endpoint in myotonic dystrophy type 1, leading to the impairment charge; the firm will assess the full dataset and engage health authorities. Additional trial updates included Pelacarsen missing its primary endpoint in the HORIZON study, while Remibrutinib succeeded in two Phase III trials for relapsing multiple sclerosis. The stock fell more than 10% after the failure was disclosed.
Why it matters
The outlook shift shows how a major pharma balances pipeline setbacks with overall financial performance, affecting investors and drug development.
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