Wall Street Weighs Impact On DYN Stock Post Novartis’ Phase 3 Failure — RBC Says These Key Differences Could Lead To Better Outcomes

RBC Capital highlighted differences in how Novartis’ and Dyne’s drugs target transferrin protein, their payloads, and their clinical trial designs.

• RBC Capital cut its target to $30 from $35 while keeping an ‘Outperform’ rating, according to The Fly.
• Dyne is developing Z-Basivarsen for myotonic dystrophy type 1.
• On Tuesday, Novartis said its Phase 3 study of Del-Desiran failed to achieve its primary goal in patients with myotonic dystrophy type 1.

Shares of Dyne Therapeutics (DYN) extended their sell-off on Wednesday, as Wall Street weighed the risk to its experimental muscle-disease drug following a major Phase 3 setback for Novartis (NVS).

At the time of writing, DYN shares traded 4.2% lower, having crashed more than 16% in the previous session.

Why DYN Stock Tanked

On Tuesday, Novartis said its Phase 3 study of Del-Desiran failed to achieve its primary goal in patients with myotonic dystrophy type 1 (DM1). The rare genetic disease causes progressive muscle weakness and difficulty relaxing muscles after contraction, and currently has no approved treatment.

Dyne is developing Z-Basivarsen for the same disease. Both companies’ studies use video hand opening time (vHOT), which measures how quickly a patient can open their hand after making a tight fist.

Novartis’ drug failed to produce a statistically significant improvement on that measure, with Baird raising concerns about whether Dyne could face a similar problem.

Dyne has enrolled 71 patients in the registrational expansion portion of its Phase 1/2 Achieve study for Z-Basivarsen. Topline results are expected in the first quarter of 2027.

Wall Street Remains Bullish

Following Novartis’ trial data, Baird lowered its price target on Dyne to $26 from $30 but maintained an ‘Outperform’ rating, saying Novartis’ failure creates a challenging read-through for Dyne. The updated target still represents about 37% upside from current levels.

RBC Capital also cut its target to $30 from $35 while keeping an ‘Outperform’ rating, but cautioned against directly applying Novartis’ results to Dyne. The firm pointed to differences in how the drugs target transferrin, their payloads, and their clinical trial designs, which it believes could lead to different outcomes.

Morgan Stanley also said Novartis’ failure raises risk but believes Dyne's program still has potential. The brokerage lowered the target to $36 from $45 and maintained an ‘Overweight’ rating.

The stock has a 12-month consensus price target of $37.53, while 16 of the 17 analysts covering the stock have rated it a ‘Buy’ and one ‘Sell,’ according to Koyfin.

Retail Says Go Long On DYN

Despite the slump, retail sentiment surrounding DYN on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

One user saw the slide in share price as a “long opportunity.”

View this Stocktwits post

DYN shares have gained around 5.5% so far in 2026.

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