Major Novartis shareholder calls for board shake-up after drug trial setbacks
David Samra does not fault CEO Vas Narasimhan and says he has done "a very good job".
A major Novartis shareholder has called for a major overhaul of the company's board after two consecutive drug trial failures led to a record drop in the company's shares. David Samra, managing director at Artisan Partners and co-founder of International Value Group, argued that the board needs to step up oversight of acquisitions.
The latest setbacks, following a failed late-stage study of a drug acquired through a US$12 billion takeover and disappointing results from a heart drug, sent Novartis' shares plummeting over 10 percent. Samra did not blame CEO Vas Narasimhan for the share price fall, praising his leadership despite a tough global environment. However, he criticized the board for its poor track record of M&A deals, which have destroyed value.
Samra also urged the board to revise the company's compensation structure to more accurately reflect economic outcomes.
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