# Novartis Shareholder Demands Board Overhaul After Costly Clinical Failures

A major shareholder of Novartis has called for a restructuring of the company’s board of directors, citing concerns over oversight of dealmaking following two recent clinical setbacks. The shareholder’s demand, reported by Reuters, questions whether the board properly evaluated the risks and costs associated with the failed programs.

The specific clinical setbacks and the identity of the shareholder were not disclosed in the summary. The shareholder’s criticism centers on the board’s role in approving and monitoring large-scale deals that led to significant financial losses.

**Relevance to the life sciences**

The dispute highlights a growing tension in the biopharmaceutical industry between aggressive dealmaking and disciplined pipeline management. Large drugmakers often acquire promising assets through licensing or acquisition, but late-stage clinical failures can wipe out billions in shareholder value. This case underscores the importance of board-level governance in evaluating the scientific and financial risks of major transactions, a concern that applies broadly across biotech, pharmaceutical, and life sciences companies where high-stakes R&D decisions are routine.

Source: [original report](https://www.fiercebiotech.com/pharma/novartis-shareholder-calls-board-overhaul-following-costly-deal-setbacks-reuters)