Why are Novartis investors intensifying scrutiny of its M&A strategy?

Investors are intensifying scrutiny of Novartis' M&A strategy after the late-stage trial failure of del-desiran—a drug acquired through the $12 billion Avidity purchase—triggered an 11% single-day share slump, wiping nearly $30 billion off market value and erasing all gains since the start of the year; this second major trial setback in days has raised concerns about the quality of clinical assets acquired via recent large deals and the company's pipeline resilience amid looming patent expiries.

What is the current stance of Novartis leadership and major shareholders on changing its M&A approach?

There are currently no plans to change Novartis' M&A or business development approach, according to a source familiar with the matter; while some major shareholders like Artisan Partners have called for board-level changes to improve M&A oversight—and others, such as DJE Kapital, advocate for smaller, $5–10 billion acquisitions targeting late-stage assets—CEO Vas Narasimhan maintains that the Avidity deal represented an 'appropriate risk', and the company continues to stand by its current strategy despite investor criticism.

Novartis investors turn spotlight on M&A after trial setbacks

Sep 10, 2026

Novartis shares dropped 11% following a late-stage trial failure for drug del-desiran, sparking investor concerns over its M&A strategy and $12 billion Avidity acquisition amid patent expiry challenges.

reuters

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Novartis investors turn spotlight on M&A after trial setbacks

Novartis investors turn spotlight on M&A after trial setbacks

FAQ