Novartis shares surged toward a historic single-day loss on Tuesday after a second major research setback in as many days sent the pharmaceutical giant's stock plunging more than 10%.
The stock fell 10.2%, or 12.78 francs, to around 112.68 francs by 10:30 local time, wiping out approximately 24 billion francs in market capitalization. The company's market value dropped to roughly 215 billion francs from about 239 billion francs.
According to an AWP news agency analysis, the drop would significantly exceed Novartis's previous worst-day losses. On January 15, 2015, when the Swiss National Bank abolished its euro currency floor, the company lost roughly 17 billion francs in market value. During the coronavirus market crash in March 2020, the loss stood at approximately 16 billion francs. In October 2008, amid the global financial crisis, the largest single-day loss was around 10 billion francs.
The Tuesday sell-off represents a sharp reversal from late August, when Novartis shares climbed to a record intraday high of 132.68 francs on September 3.
