Investors Scrutinize Novartis' M&A Strategy After Drug Trial Setbacks
Novartis investors are intensifying their focus on the company's mergers and acquisitions strategy following recent drug trial failures that have hurt its stock. The failure of del-desiran, a treatment for muscle-wasting disorders acquired through last year’s $12 billion Avidity purchase, has raised concerns about Novartis' pipeline and dealmaking approach. The setback comes as CEO Vas Narasimhan faces growing pressure to navigate patent expiries and maintain growth. Despite his strong track record on shareholder returns, some investors are calling for a shift in strategy toward smaller acquisitions rather than large-scale deals. A source close to the company said there were no immediate plans to change its M&A approach. Major shareholders like Artisan Partners have called for board changes related to deal oversight while still supporting Narasimhan’s leadership. Investors remain divided, with some pointing out promising drugs in Novartis' pipeline and others emphasizing the need for more strategic acquisitions.
Topics: drug trial failures investor scrutiny mergers & acquisitions (M&A) Novartis share price decline