What is Pelacarsen and why did its failure trigger the collapse?

Pelacarsen is a drug preparation that Novartis was developing to treat serious cardiovascular risks. The company announced negative results in clinical trials: the drug did not demonstrate the expected efficacy. For Novartis, it represented hope for future growth. The failure has raised questions about the soundness of the overall research pipeline.

What is Del-desiran and what was its purpose?

Del-desiran is a Novartis product intended for the treatment of a rare muscle disease. During a phase III study (the final level of testing before approval), it did not achieve the expected outcomes. The announcement of the bankruptcy was made on the same day as the collapse of Novartis, aggravating the negative sentiment of investors.

What was the most serious collapse of Novartis in history?

According to the AWP agency, this morning's collapse is the worst ever recorded in the history of the Novartis stock. By way of historical comparison: the abolition of the minimum euro/franc exchange rate by the SNB (January 2015) had burned 17 billion francs; the arrival of Covid (March 2020) 16 billion; the financial crisis of October 2008 just over 10 billion. Novartis has far exceeded all these precedents.

How does the collapse of Novartis impact my LPP/BVG pension fund?

If your pension fund includes Swiss equities or an SMI/SPI index, Novartis is almost certainly included because it is a massive component of these indices. A 10% drop in the stock reduces the value of your retirement position proportionally to Novartis' percentage in the fund. Contact your pension fund to find out the precise exposure: it is often between 1% and 3% of the total portfolio.

Should I sell my Novartis shares now to avoid further losses?

The decision depends on your personal risk profile and investment time horizon. A daily collapse, however dramatic, does not mean the end of the company: Novartis is still a giant with profitable medicines on the market. Selling today means crystallizing losses; buying now means speculating on recovery. Before any action, consult an independent financial advisor who knows your complete situation and your true financial goals.

Novartis Plummets 10% in Stock Exchange for Failed Studies

Di Laura Bianchi · Published on 8 September 2026

Swiss panorama reflecting national economic stability amid market turbulence

Pelacarsen and Del-desiran fail clinical trials. Capitalization down CHF 24 billion, the most severe collapse in history.

Context

In brief

Novartis plummets over 10%, loses CHF 24 billion in market capitalization
Two failed studies on cardiovascular and neuromuscular treatments
It's the worst stock collapse ever recorded in its history

Key facts

What: Stock market collapse of 10%
Amount: CHF 24 billion lost, price down to 112.06 CHF (–13 CHF per share)
Causes: Failure of Pelacarsen (cardiovascular) and Del-desiran (rare muscular disease) studies
Market capitalization: Fell from CHF 239 to CHF 215 billion
Record: Worst daily collapse ever recorded for Novartis
Historical comparison: Exceeds SNB losses in 2015 (–17 bn), Covid 2020 (–16 bn), 2008 (–10+ bn)

Novartis shares experienced one of the worst days in their history. The share of the Basel-based pharmaceutical giant collapsed by more than 10% in the morning, touching a low of 112.06 francs, with a loss of nearly 13 francs per share. A massive evaporation of value that translates to approximately 24 billion francs: market capitalization fell from 239 to approximately 215 billion francs.

The fall is all the more dizzying when compared to the recent past. Just a week ago, on September 3rd, the share had touched a historic high of 132.68 francs. The drop from peak to low wiped out every gain of the week in just a few hours.

The worst collapse in Novartis's history

According to data processed by the Awp agency, the crash is destined to go down in the annals as the worst daily collapse ever recorded. To give historical perspective on the severity: the end of the euro/franc minimum exchange rate decreed by the SNB in January 2015 had wiped out 'only' 17 billion francs, the arrival of Covid in March 2020 had an impact of 16 billion, while the financial crisis of October 2008 had caused a drop of just over 10 billion. Novartis has far surpassed all these precedents in a single trading session.

Market reaction reflects disappointment over recent failures in clinical research. Yesterday, negative results were disclosed regarding Pelacarsen, a treatment in development against serious cardiovascular risks. Today it emerged that Del-desiran, a product intended for the treatment of a rare muscular disease, did not achieve the expected outcomes in a phase III study. Two clinical setbacks announced in just a few days triggered panic among investors, triggering cascading sell orders.

Operational details

Direct impact on Swiss pension funds and investors

Novartis is not a marginal stock in the Swiss portfolio. As one of the world's three largest pharmaceutical manufacturers, headquartered in Basel and listed on the Swiss stock exchange, Novartis is a historic and massive component of the SMI and SPI indices. It is ubiquitous in supplementary pension funds (LPP/BVG) of those who work in Switzerland and frequent in third pillar investments (3a) of those who want to diversify their savings.

A collapse of this magnitude generates direct and tangible losses. Corporate pension funds that include the security see the value of assets decline: a loss of 24 billion from the security is proportionally reflected in savers' accounts. Those who have invested in the 3a through Swiss equity funds suffer an immediate contraction in net worth. Investors who own Novartis shares directly cash out less in a potential sale these days than they did a week ago.

Although a single session crash is dramatic in the short term, the history of Swiss markets offers a more reassuring prospect. After the abolition of the minimum euro/franc exchange rate (January 2015) and the Covid collapse (March 2020), Swiss indices recovered in the medium to long term, albeit with volatility. However, the immediate psychological damage is real: trust in Swiss pharmaceutical stocks takes a significant hit.

Because Novartis is different from

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to check if you are exposed to the Novartis collapse

If you are a Swiss investor or saver, this collapse potentially affects you. Here is the procedure to understand your exposure:

Step 1: Check your bank account or broker. If you own Novartis shares directly, you will see the decline reflected instantly in your account statement. Access your bank's or broker's online portal, search for Novartis in your portfolio, note the number of shares and the current price. By multiplying these two numbers you will have the current value of your position.

Step 2: Check your LPP/BVG pension funds. Request from your employer or directly from the pension fund the documents showing the composition of the insurance portfolio. If the fund includes Swiss equities (often referred to as SMI tracker or SPI tracker), Novartis is almost certainly included. The 10% reduction in the share translates into a proportional contraction in the value of your pension position: if the fund is composed of 2% Novartis, the collapse costs you approximately 0.2% of the total value.

Step 3: Check your third pillar 3a. If you have opened a 3a account at a bank and have chosen active management or an equity fund, it may contain Novartis. Request the statement of portfolio composition. This information is crucial because the 3a often represents your main tool for tax savings and pension protection: knowing what it contains is essential.

What to do in the coming days

Don't give in to panic. A black day does not mean the end of Novartis. The company remains one of the three pharmaceutical giants in the world with a broad portfolio of medicines already on the market that generate billions in annual revenue. The failures of Pelacarsen and Del-desiran are serious from the perspective of future research, but they do not eliminate the drugs that Novartis sells today in global markets.

Assess your overall risk profile. If today's Novartis collapse has caused you anxiety or insomnia, it is a signal: perhaps your total portfolio is too exposed to equities compared to your true risk tolerance. A professional review of the allocation between stocks and bonds (asset allocation) may be appropriate: an independent financial specialist can help you recalibrate based on your age, time horizon and concrete objectives.

Following developments is essential. Novartis could recover significantly in the coming months if other products in development show positive results in clinical trials. Conversely, if other trials fail, the stock could suffer further. Stay informed through official Novartis financial reports and consult your pension management tools to maintain conscious control of your investment choices.

Source: swissinfo.ch

Frequently Asked Questions

What is Pelacarsen and why did its failure trigger the collapse?: Pelacarsen is a drug preparation that Novartis was developing to treat serious cardiovascular risks. The company announced negative results in clinical trials: the drug did not demonstrate the expected efficacy. For Novartis, it represented hope for future growth. The failure has raised questions about the soundness of the overall research pipeline.
What is Del-desiran and what was its purpose?: Del-desiran is a Novartis product intended for the treatment of a rare muscle disease. During a phase III study (the final level of testing before approval), it did not achieve the expected outcomes. The announcement of the bankruptcy was made on the same day as the collapse of Novartis, aggravating the negative sentiment of investors.
What was the most serious collapse of Novartis in history?: According to the AWP agency, this morning's collapse is the worst ever recorded in the history of the Novartis stock. By way of historical comparison: the abolition of the minimum euro/franc exchange rate by the SNB (January 2015) had burned 17 billion francs; the arrival of Covid (March 2020) 16 billion; the financial crisis of October 2008 just over 10 billion. Novartis has far exceeded all these precedents.
How does the collapse of Novartis impact my LPP/BVG pension fund?: If your pension fund includes Swiss equities or an SMI/SPI index, Novartis is almost certainly included because it is a massive component of these indices. A 10% drop in the stock reduces the value of your retirement position proportionally to Novartis' percentage in the fund. Contact your pension fund to find out the precise exposure: it is often between 1% and 3% of the total portfolio.
Should I sell my Novartis shares now to avoid further losses?: The decision depends on your personal risk profile and investment time horizon. A daily collapse, however dramatic, does not mean the end of the company: Novartis is still a giant with profitable medicines on the market. Selling today means crystallizing losses; buying now means speculating on recovery. Before any action, consult an independent financial advisor who knows your complete situation and your true financial goals.