Major Novartis shareholder calls for board shake-up after drug trial setbacks
NVS•Samra says acquisition track record is weak
Samra also cited Novartis' 2024 acquisition of German biotech MorphoSys as a disappointing deal. Investor enthusiasm faded after Novartis wrote down the value of the acquisition only months later.
Many analysts have viewed the latest setbacks as a test of Novartis CEO Vas Narasimhan, who has led the company since 2018.
But Samra said he did not blame Narasimhan, arguing he had done a "very good job" running the business, and instead questioned whether the board had exercised sufficient scrutiny over deals.
"The acquisition track record is not very good," Samra said, arguing that deals had destroyed value.
Samra also urged the board to overhaul Novartis' compensation structure, saying it relies too heavily on adjusted performance measures that exclude writedowns rather than reflecting "real economic outcomes."
