Shareholder Calls for Novartis Board Overhaul Amid Acquisition Struggles

David Samra, a major shareholder, demands a shake-up of Novartis' board to enhance oversight following record share price declines. The Swiss drugmaker faced setbacks from poorly performing acquisitions, prompting calls for improved corporate governance and a board overhaul. Despite recent challenges, CEO Vas Narasimhan is not seen as responsible for the losses.

A prominent shareholder is urging a shake-up of Novartis AG's board, following a significant drop in share value after consecutive trial failures. David Samra, managing director at Artisan Partners, criticized the board's handling of acquisitions and called for chairman Giovanni Caforio to implement changes.

Samra suggests augmenting leadership at the board level, emphasizing the need for a more adept team to negotiate deals, as recent acquisitions have been unconvincing. Despite the challenges, he refrained from blaming CEO Vas Narasimhan, who has steered a substantial share price increase during his tenure.

The call for change comes after a muscle-wasting disorder drug flopped in trials, costing Novartis billions in market value. While concerns mount over the company's M&A strategy, Novartis maintains optimistic financial guidance, emphasizing its robust drug pipeline and shareholder-friendly capital allocation.