Breakingviews - COMMENTARY: For Novartis, M&A is both a disease and cure

DUBLIN, Sept 11 (Reuters Breakingviews) - The Swiss firm's market value fell over $30 bln after a drug acquired in a recent takeover disappointed, prompting calls for a board shake-up. But expiring patents in coming years will force CEO Vas Narasimhan to do deals. That may be harder if he is distracted by investor anger. Full view will be published shortly. Follow Aimee Donnellan on LinkedIn, opens new tab. Context News* A major shareholder in Novartis on September 10 called for a shake-up of the Swiss drugmaker's board to improve corporate governance after its shares suffered a record fall following back-to-back trial setbacks. * David Samra, managing director at top 20 investor Artisan Partners and founding partner of International Value Group, said the board needed to strengthen its oversight of acquisitions, calling for action from board chairman Giovanni Caforio. * On September 8, a muscle-wasting disorder drug acquired through Novartis' $12 billion takeover of U.S. firm Avidity failed a late-stage study, sending the company's shares tumbling more than 10% and wiping over $30 billion off its market value. * Novartis' stock, which had been up some 20% year-to-date before this week's slide, had already fallen a day earlier after results from heart drug pelacarsen disappointed investors. Editing by Neil Unmack; Production by Varun H K * Suggested Topics: * Breakingviews Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Follow us on X @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors. Aimee Donnellan Thomson Reuters Aimee joined Breakingviews in 2017 and writes about pharmaceuticals, consumer goods groups, retail and insurance. She is also co-host of the Breakingviews podcast The Viewsroom. Based in Ireland, she previously spent three years at The Sunday Times as banking correspondent. Prior to that, she was a senior reporter covering the bond market at IFR, a financial trade publication published by Thomson Reuters. She holds a degree in English and History from the National University of Ireland, Galway, and a diploma in journalism from the London School of Journalism.

Breakingviews - COMMENTARY: For Novartis, M&A is both a disease and cure

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