Novartis’s core new drug pipeline “Del‑desir,” acquired through the Daegu‑Mo acquisition, has recorded a failure in clinical trials. This news became a major event that forced the company to revisit its expected patent acquisition and growth strategy.
The clinical trial was conducted until the end of 2023, but it reportedly showed lower-than-expected responses during the overall safety and efficacy evaluation phase. The results indicated that “Del‑desir” did not demonstrate sufficient effect in the clinical stage, shocking investors and internal strategists.
Based on the existing patent acquisition approach, Novartis had been planning to file a patent for “Del‑desir” while simultaneously expanding its pipeline. However, with the confirmation of clinical failure, the company faced the need to reconstruct its patent and R&D budgeting structure.
Strategically, Novartis has re-evaluated its new drug development process through this incident. Moving away from the high-risk, high-reward model it had previously followed, it is seeking a direction that strengthens step-by-step scientific validation and enhances market demand forecasting. Additionally, to rebuild its pipeline, the company is considering diversifying internal research talent and expanding external collaboration networks.
A Novartis spokesperson said, “This failure is not merely an isolated incident; it offers an important lesson on the direction we must take going forward.” They added that strategic repositioning for new drug development and patent acquisition is essential.
Ultimately, the failure of “Del‑desir” temporarily hampers Novartis’ growth strategy while simultaneously triggering new discussions about long-term R&D direction and corporate value. How the company will act next remains a focal point for markets and investors alike.