Trial misses prompt shake-up call from major Novartis stockholder

Swiss pharma major Novartis (NOVN: VX) is under public pressure to overhaul its board after two late-stage trial failures in the space of a few days triggered the steepest share price fall in the company's history. David Samra, managing director at USA-based fund manager Artisan Partners (NYSE: APAM), told Reuters on Thursday that the board needs far stronger oversight of acquisitions.

Mr Samra, who is also a founding partner of the firm's International Value Group, aimed his criticism at chairman Giovanni Caforio. He argued that Mr Caforio should make changes at board level, bring in directors with genuine dealmaking expertise, and establish a dedicated acquisition committee to scrutinize transactions before they are signed off.