Artisan Partners, a major Novartis shareholder, is publicly demanding an overhaul of the Swiss drugmaker's board of directors. This move follows a significant decline in Novartis's share price this week. The stock drop was triggered by two consecutive drug trial failures.
Artisan Managing Director David Samra criticized past chairmen for a history of failed acquisitions. He urged current chairman Giovanni Caforio to reform the company’s deal oversight process immediately.
The investor specifically targeted the $12 billion acquisition of Avidity after a key drug failed a late-stage study. Artisan also criticized the 2024 purchase of MorphoSys as part of a pattern of poor capital allocation.
Artisan is the first major investor to publicly demand these governance changes. This move signals a rise in shareholder activism that could force strategic shifts at the pharmaceutical giant.