Novartis Investor Calls for Board Shake-Up After Trial Failures Tank Shares
Artisan Partners, a major Novartis shareholder, is demanding board changes and improved acquisition oversight after the drugmaker's shares fell to record lows following two late-stage trial failures. The setbacks include a failed muscle-wasting disorder drug from Novartis's $12 billion Avidity acquisition and disappointing heart drug pelacarsen results. The investor criticized successive chairmen for poor deal oversight. Separately, CMS Administrator Mehmet Oz says the Trump administration is pursuing additional voluntary drug pricing deals with pharmaceutical companies beyond the two dozen agreements already announced.
The Novartis board pressure signals increased investor scrutiny of pharmaceutical M&A and pipeline management, while the Trump administration's voluntary pricing deals could reshape Medicaid pharmacy spending if manufacturers agree to lower public program prices.
Pharmacy
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