Novartis Stock Jumps as MS Drug Trial Success Overshadows CAR-T Setback

Shares in Novartis (NOVN) surged 4.4% to CHF 128.66 on Tuesday after the Swiss pharmaceutical giant reported positive results from two pivotal Phase III trials for a new multiple sclerosis (MS) treatment, signaling a potential new growth driver for the company.

Pivotal Trial Success for Remibrutinib

Novartis announced that its oral drug, remibrutinib, successfully met the primary endpoints in both the REMODEL-1 and REMODEL-2 studies for relapsing multiple sclerosis. The company stated the drug demonstrated a significant reduction in annualized relapse rates compared to the existing therapy, teriflunomide.

Furthermore, remibrutinib showed superiority across all key secondary endpoints, which included a reduction in MRI brain lesions and a clinically meaningful delay in disability progression. Novartis plans to present the late-breaking data at the upcoming MSToronto2026 congress and intends to submit the drug for regulatory approval with global health authorities.

Investors Weigh Clinical Setback

The positive trial data overshadowed a separate, more concerning disclosure from the company. Novartis confirmed it had paused eight clinical studies of its experimental CAR-T cell therapy, Rap-cel, which was being tested in lupus, multiple sclerosis, and other autoimmune conditions.

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The pause was initiated after three patients died from severe immune reactions in late August. However, investors appeared to weigh the two developments and conclude that the commercial opportunity for remibrutinib in the large MS market was the more financially material event.

Market Context and Outlook

The stock's advance came in defiance of a weaker broader market, with major U.S. indices trading in negative territory. The move pushes the share price close to its 52-week high of CHF 131.50 and builds on a constructive backdrop for the stock, which recently received a 'Buy' rating initiation from Deutsche Bank.

Analysts note that the remibrutinib success adds another layer to Novartis's strong pipeline narrative, which already includes robust growth from its cancer drugs Pluvicto and Kisqali. The Phase III data served as the decisive catalyst, convincing investors to price in a new potential blockbuster therapy.