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Novartis raises core profit guidance, books $1.9 billion hit from drug trial setback

By Thomson Reuters Oct 27, 2026 | 1:14 AM

ZURICH/LONDON, Oct 27 (Reuters) – Novartis raised its full-year core operating income guidance on Tuesday but ​also booked a $1.9 billion partial ‌impairment charge related to a pipeline setback in September.

The Swiss drugmaker now expects core operating income to grow ‌by ​a low single-digit ⁠percentage compared with ⁠the low single-digit decline previously expected. It maintained its forecast for low single-digit net sales growth.

In the ​third quarter, core operating income increased 10% at constant ⁠exchange rates thanks ⁠to higher net sales, ​the Basel-based company said.

Reported operating income, ​the non-adjusted figure, declined 61%, which ‌Novartis attributed to higher research and development costs and a $1.9 billion partial impairment charge for ⁠del-desiran, one of two consecutive major trial setbacks unveiled in September that sent ⁠shares ‌tumbling.

The drug, which was ⁠being tested for myotonic ​dystrophy, ‌a muscle-wasting disease with ​no approved ⁠treatments, was obtained through Novartis’ $12 billion acquisition of Avidity.

(Reporting by Marleen Kaesebier, Bhanvi Satija and Patricia Weiss, Editing by Friederike Heine and ​Thomas Derpinghaus)