Novartis books $1.9bn del-desiran charge but keeps faith in Avidity deal

Novartis has taken a $1.9 billion partial impairment charge on del-desiran, the lead asset from its Avidity Biosciences acquisition, according to its third-quarter results published on 27 October. The charge was the main reason operating income fell 59% in the quarter. Novartis says it will work with health authorities on the best development path from here.

What went wrong

Del-desiran is an antibody-oligonucleotide conjugate built to reach muscle cells and break down DMPK messenger RNA, the cause of myotonic dystrophy type 1 (DM1). As BioSpace reports, the 159-patient Phase 3 HARBOR study missed its primary endpoint on hand function, a result first disclosed in September. Novartis bought Avidity for about $12 billion in a deal announced in October 2025, with del-desiran a central part of the rationale.

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Chief executive Vas Narasimhan described the write-down as "the mathematical shift of our assumption", BioSpace reports, pointing to activity on secondary and exploratory endpoints and saying another pivotal programme is needed. That means more time and money before a filing. Novartis says the full HARBOR dataset will be presented at an upcoming medical congress.

The rest of the Avidity portfolio is still moving. Del-brax is in Phase 3 in facioscapulohumeral muscular dystrophy, with Novartis discussing accelerated approval with the FDA, and del-zota has priority review for certain forms of Duchenne muscular dystrophy.

The numbers

Underneath the charge, the quarter held up. Net sales were $14.522 billion, up 4%, as volume growth outweighed generic erosion. In I&I and CNS, Cosentyx brought in $1.857 billion (up 9%) and multiple sclerosis drug Kesimpta $1.484 billion (up 22% at constant currency). Entresto, now facing generics, fell 38% to $1.165 billion. Novartis raised its 2026 core operating income outlook to flat to low single-digit growth, from a low single-digit decline.

BioPharma Dive notes that oral BTK inhibitor remibrutinib succeeded in two Phase 3 multiple sclerosis trials, and that Novartis projects peak annual sales of $4 billion in that indication.

The bigger picture

Novartis is working through what its CFO called the largest patent expiry in its history while betting on neuroscience, immunology and neuromuscular disease. BioSpace also lists other recent setbacks: the pause of several CAR-T studies in immunology and neurology after three deaths, and the end of TREM2 stabiliser lifonebart in ALS. Large acquisitions buy pipeline, but a single Phase 3 result can still move the value of a $12 billion deal by billions.

What it means for hiring

A new pivotal programme for del-desiran points to continued demand for neuromuscular clinical development leads and trial operations people with rare muscle disease experience.
With del-brax and del-zota heading towards regulators, we'd expect Novartis to keep investing in neuromuscular regulatory affairs, medical affairs and launch planning.
Kesimpta's growth and remibrutinib's Phase 3 wins keep MS commercial and medical talent in demand, which tightens the pool for smaller CNS companies hiring the same profiles.

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