Novartis Halts ALS Drug VHB937 After Phase 2 Failure
ALEC sits 83% above its 52-week low of $1.09 on light trading volume (0.1× avg).
Summary
Novartis discontinued development of VHB937 (lifonebart) for ALS after the drug failed both primary and secondary endpoints in a 251-patient Phase 2 trial. This is the latest pipeline setback for Novartis, following recent failures in heart and muscle-wasting drugs. For Alector, the news is a negative read-through: Alector's own TREM2-targeting drug failed a mid-stage ALS trial in 2024, and Novartis's failure reinforces the difficulty of this mechanism. Alector is already reeling from GSK's termination of their collaboration in July and the discontinuation of its nivisnebart Phase 2 trial. The company's cash runway extends into 2027, but its pipeline is increasingly challenged. Watch for any Alector commentary on its remaining TREM2 programs or strategic updates.
At the time of this announcement, ALEC was trading at $2.00 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $223.3M. The 52-week trading range was $1.09 to $3.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.