Novartis (NVS) and Ionis (IONS)’ Big Cholesterol Bet Comes Up Short in Late-Stage Trial
Novartis and Ionis’ late-stage cholesterol program fell short, weakening a major clinical bet for both companies. The result shifts attention to the program’s commercial prospects and to Ionis’ ability to offset pipeline risk with its broader portfolio.
The late-stage trial outcome affects Novartis and Ionis’ cholesterol collaboration, but the specific efficacy, safety and regulatory details are not established here. The program was positioned as a significant bet for both companies, making the shortfall a direct setback for a potentially important development asset.
Ionis reported FY2025 revenue of $943.7M, up 33.8% year over year, alongside a net loss of 40.4% of revenue and diluted EPS of $-2.38. Those figures provide financial context for the pipeline setback, but they are annual company figures and do not quantify the program’s contribution or the effect of this trial on future revenue.
For Novartis, the mechanism is pipeline optionality: a disappointing late-stage cholesterol result reduces the value of this particular cardiovascular opportunity. For Ionis, the link is more direct because the company’s economics depend on advancing and commercializing partnered medicines; the trial outcome therefore adds pressure to the rest of its development portfolio.
The size of the setback remains uncertain because the trial’s endpoint performance, safety profile, next regulatory step and partnership response are not established in the available reporting. Those details would determine whether the program is abandoned, redesigned or retained for a narrower use.
The next evidence to watch is a fuller clinical disclosure from the companies, including the primary endpoint result, safety findings and any decision on further development. Ionis’ next quarterly update will also show whether management changes its pipeline or financial framing after the result.
The late-stage trial failure moves the pipeline risk to the downside for IONS, while NVS faces a narrower setback to its cardiovascular portfolio.
The immediate consequence is reduced value in a partnered late-stage asset, with Ionis more exposed because its FY2025 profile still included a $-2.38 diluted EPS loss and a -40.4% net margin. The trade read stays non-directional until the companies disclose the endpoint, safety and development path, because those details decide whether this is a terminal failure or a narrower commercial setback.
A favorable full data release, a viable follow-on development plan or evidence that the program was financially immaterial could blunt the pipeline impact.
CoverageSource: Yahoo Finance · Published here THU, SEP 17 · 11:21 AM ET · the only report in this recordHow this is decided →
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Ionis’ FY2025 revenue grew 33.8% to $943.7M, leaving a broader revenue base that could absorb a setback if other partnered programs advance.
The late-stage cholesterol trial fell short, removing support from a major development bet while Ionis remains loss-making, with FY2025 diluted EPS of $-2.38.
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