Novartis' M&A Strategy Under Investor Scrutiny After Drug Setbacks

Novartis faces increased investor scrutiny over its mergers and acquisitions strategy following setbacks with acquired drugs. The recent failure of the muscle-wasting disorder drug, del-desiran, has raised concerns about last year's $12 billion Avidity acquisition. Investors remain apprehensive about the company's business development under CEO Vas Narasimhan.

Novartis is under increased investor scrutiny following setbacks with its mergers and acquisitions strategy, particularly after a late-stage clinical trial failure of its muscle-wasting disorder drug, del-desiran. This hurdle adds to concerns over last year's $12 billion purchase of Avidity, leading to a significant decline in Novartis shares.

CEO Vas Narasimhan, seen as managing shareholder interests adeptly, is now under the spotlight. Investors question his direction as Novartis navigates forthcoming patent expiries. Some stakeholders suggest smaller acquisitions could better fortify the company compared to larger, riskier deals.

The company's recent performance has investors urging a reevaluation of its acquisition strategy. With M&A oversight now a focal point, Artisan Partners, a notable shareholder, has called for board restructuring. Despite these challenges, promising prospects like remibrutinib remain in the pipeline for Novartis.