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Novartis halts ALS drug development after mid-stage trial failure - Finance news and analysis from Global Banking & Finance Review
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Novartis halts ALS drug development after mid-stage trial failure

Published by Global Banking & Finance Review

Posted on September 16, 2026

2 min read

· Last updated: September 16, 2026

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Novartis Discontinues ALS Drug VHB937 After Failing Mid-Stage Trial

Novartis Faces Setbacks in Drug Development Pipeline

By Sriparna Roy

ALS Drug VHB937 Development Halted

Sept 16 (Reuters) - Novartis has halted development of an experimental drug for amyotrophic lateral sclerosis after it failed to meet goals in a mid-stage study, marking the latest disappointment for the Swiss drugmaker this year.

Recent Drug Pipeline Challenges

This follows an earlier setback for a closely watched heart drug, last week's late-stage failure of a muscle-wasting drug, and the halt of eight of 10 studies for its rap-cel cell therapy this month after three patient deaths. These developments have intensified investor scrutiny of its pipeline.

Confirmation and Reporting of Discontinuation

Endpoints News and Bloomberg News reported the news earlier on Wednesday, which the company later confirmed in an emailed statement to Reuters, saying it was discontinuing development of the drug VHB937.

About VHB937 and ALS

The drug, also called lifonebart, was being studied in patients with ALS, also called Lou Gehrig's disease. It is a neurodegenerative condition that affects how nerve cells communicate with muscles and leads to muscle weakness that worsens over time.

The company's U.S.-listed shares were marginally up.

Mid-Stage Trial Results

The drug failed to meet both main and secondary goals in the mid-stage trial, which was evaluating the efficacy and safety of VHB937 in participants with early-stage ALS within two years of symptom onset.

The study had enrolled 251 patients, according to clinicaltrials.gov.

Mechanism of Action: TREM2 Stabilization

The drug aims to stabilize TREM2, a protein that helps regulate immune responses, inflammation and waste clearance in the brain.

Industry-Wide Challenges with TREM2 Drugs

Companies have been trying to develop TREM2 drug candidates but have faced failures. In 2024, Alector said its experimental drug failed in a mid-stage trial.

Ongoing Research and Future Prospects

Novartis is also studying the drug in patients with Alzheimer's disease, a progressive brain disorder that slowly robs memory.

The clinical trials website shows the company is recruiting patients for the mid-stage trial.

(Reporting by Anusha Shah and Sriparna Roy in Bengaluru; Editing by Vijay Kishore)

Key Takeaways

  • Novartis discontinued development of VHB937 for ALS after the ASTRALS Phase 2 trial failed to meet key objectives, involving 251 patients (als.eu).
  • This setback compounds a fresh wave of mid‑ and late‑stage trial failures, including muscle‑wasting drug del‑desiran and the pause of rap‑cel cell therapy trials after three patient deaths (statnews.com).
  • VHB937 targets TREM2 to modulate microglial activity—a strategy that has faced similar disappointments, such as Alector’s AL002 failure—casting doubt on TREM2‑focused approaches in neurodegeneration (alzheimers.dev).

References

Frequently Asked Questions

Why did Novartis halt the development of its ALS drug?
Novartis halted development of its experimental ALS drug VHB937 after it failed to meet main and secondary goals in a mid-stage clinical trial.
What is VHB937 and what was it being tested for?
VHB937, also called lifonebart, is an experimental drug that was being tested for treating amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease.
How many patients were enrolled in the Novartis ALS trial?
The mid-stage clinical trial for VHB937 enrolled 251 patients with early-stage ALS.
What setbacks has Novartis faced in 2024?
Novartis has faced multiple setbacks in 2024, including failures of a heart drug, a muscle-wasting drug, and the halt of most studies for its rap-cel cell therapy after patient deaths.
Is Novartis testing VHB937 for other conditions?
Yes, Novartis is also studying VHB937 in patients with Alzheimer's disease and is currently recruiting for a mid-stage trial.

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