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Amgen Drops 10% on a Trial It Didn't Even Run
Artisan Partners said Novartis should overhaul its board and pay rules after a drug trial failure wiped nearly $30 billion from its market value.
- On Tuesday, Artisan, a top 20 Novartis shareholder, publicly demanded a board shake-up following back-to-back trial setbacks; managing director David Samra urged Chairman Giovanni Caforio to strengthen acquisition oversight.
- A muscle-wasting drug acquired in Novartis' $12 billion Avidity takeover failed a late-stage study Tuesday, wiping nearly $30 billion from market value; the stock had already fallen 3% after heart drug pelacarsen disappointed investors.
- Samra argued "the acquisition track record is not very good," citing the disappointing 2024 acquisition of German biotech MorphoSys, and urged the board to overhaul compensation structures relying too heavily on adjusted performance measures.
- While Samra credited CEO Vas Narasimhan with a "very good job" managing operations since 2018, he emphasized board-level changes are necessary; Novartis responded that financial guidance remains unchanged with a "broad" pipeline.
- Public pressure from large investors like Artisan often signals shifts in corporate governance; officials have announced more than two dozen voluntary agreements with pharmaceutical companies to lower drug prices amid tariff pressures.
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Coverage Details
Total News Sources12
Leaning Left0Leaning Right2Center7Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
C 78%
R 22%
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