Shake-up Urged at Novartis After $30 Billion Market Loss

Pressure mounts on Novartis' board for reforms in corporate governance after major shareholder Artisan Partners criticizes oversight of deals and acquisitions. This comes after substantial share drops due to trial setbacks. Shareholder David Samra insists on board-level changes, highlighting the need for improved acquisition strategies.

Artisan Partners, a significant shareholder in Novartis, is calling for a reform in the Swiss pharmaceutical giant's board to enhance corporate governance. This move follows a record decline in the company’s shares after consecutive trial failures.

David Samra, managing director at Artisan Partners, expressed his concerns, stating that Novartis's previous executives failed in overseeing acquisitions efficiently. He specifically addressed the need for changes under the current chairman, Giovanni Caforio. Novartis recently faced a tumbling of over 10% in its shares after a drug from its $12 billion Avidity acquisition failed a crucial trial phase.

Artisan Partners is the first to publicly demand board changes over the firm’s underwhelming M&A strategies. Other investors share similar concerns. Despite the current backlash, Novartis maintains the firmness of its financial guidance and promises continued focus on its diverse drug pipeline.