Novartis Slides on Cholesterol Drug Failure; Asian Tech Stocks Surge Amid Middle East Tensions

Key points

• Novartis shares dropped up to 3.6% after pelacarsen failed to show clinical cardiovascular benefits in a late-stage trial, despite reducing cholesterol levels.
• The failure raises stakes for Novartis’s upcoming del-desiran trial, linked to its $12 billion Avidity acquisition, amid concerns over a steep patent cliff.
• Ionis Pharmaceuticals fell 10% in extended trading, and Amgen dropped 5%, as both are developing similar treatments.
• South Korea’s Kospi rose 4.61% and Japan’s Nikkei 225 gained 2.12%, driven by strong performance in tech stocks like Samsung, SK Hynix, and SoftBank.
• European markets opened lower, with healthcare stocks leading losses, while oil prices rose as U.S. Energy Secretary Chris Wright suggested an Iran nuclear deal may not be imminent.
• LG Electronics jumped 8% after reports that its subsidiary Bear Robotics is seeking up to 400 billion won in pre-IPO funding for a Nasdaq listing.

Background

U.S. stock markets were closed on September 7, 2026, for the Labor Day holiday, as noted in previous coverage. Recent analysis highlighted durable investing themes, including healthcare innovation and AI infrastructure, which may influence investor sentiment in sectors affected by today’s news. The current market movements occur against a backdrop of geopolitical tensions in the Middle East and ongoing debates regarding interest rate policies in Europe.

Why it matters

The failure of pelacarsen underscores the risks associated with Novartis’s reliance on new drug pipelines to offset expiring patents, potentially impacting its stock valuation and future R&D strategies. The surge in Asian tech stocks reflects investor confidence in semiconductor and robotics sectors, while rising oil prices due to Middle East tensions could influence global energy costs and inflation expectations. The pre-IPO move by Bear Robotics signals growing interest in humanoid robotics, a key component of future AI infrastructure investments.

What to watch

Investors will monitor Novartis’s upcoming del-desiran trial results and assess the impact of pelacarsen’s failure on its broader pipeline. European Central Bank interest rate decisions are expected on Thursday, with a quarter-percentage-point hike anticipated. Oil prices may continue to fluctuate based on developments in U.S.-Iran relations, while LG Electronics’ pre-IPO fundraising for Bear Robotics could set a precedent for other robotics firms seeking public listings.