Exclusive-Major Novartis shareholder calls for board shake-up after drug trial setbacks

ZURICH - A significant Novartis investor, David Samra, has demanded a change in the company's board of directors following recent setbacks in drug trial results. This comes after a 10% drop in Novartis' shares due to two failed trials, which together erased nearly $30 billion from the company's market value.

Samra, managing director at Artisan Partners and a founding partner at International Value Group, believes the board needs to improve its oversight of acquisitions. He specifically targets board chairman Giovanni Caforio, urging him to bring in more capable board members and establish an acquisition committee.

Samra doesn't hold CEO Vas Narasimhan responsible for the current situation, praising his leadership despite a challenging global environment. However, he believes the board has not done enough to scrutinize deals, which have resulted in losses. He urges the board to revamp its compensation structure to better reflect real economic outcomes rather than just adjusted performance measures.