Sector News

Perrigo hands Starboard 5 boardroom seats

February 8, 2017
Life sciences

Perrigo and its activist investor have come to an agreement, and it’s one that’ll overhaul the company’s board.

On Tuesday, the Irish pharma announced that as part of an accord with the outspoken Starboard Value, it would be adding five of Starboard’s picks—including Starboard CEO Jeffrey Smith—to its board. Nestlé USA vet Bradley Alford and former Pfizer chief Jeff Kindler will also assume director spots, with two additional directors to be named later.

To make way, Herman Morris, Shlomo Yanai, Michael Jandernoa, and Gary Kunkle are stepping down from the Perrigo board, and Ellen Hoffing will do the same once Starboard lands the second of its recruits.

Chairman Laurie Brlas and CEO John Hendrickson “have been committed to bringing new energy and fresh perspectives to Perrigo” since they took up their posts in April of last year, Brlas said in a statement. “We are pleased to have reached this agreement with Starboard and look forward to working closely with the new directors to create value for our shareholders.”

The shakeup follows a September letter in which then-new shareholder Starboard slammed Perrigo’s “woeful” performance and urged the Dublin drugmaker to hive off its generic and specialty pharma products as well as its royalty interest in Biogen’s Tysabri.

“We believe the company could benefit from outside advice from a reputable investment bank or advisor on non-core asset divestitures or other broader strategic alternatives,” Smith wrote to Hendrickson.

While some analysts haven’t been too gung-ho about Starboard’s ideas—Perrigo’s core OTC business and its pharma segment are “heavily integrated” and a Tysabri divestment would take a toll on earnings, RBC Capital Markets’ Randall Stanicky wrote at the time—others don’t see a whole lot of hope for Perrigo in 2017. Last month, Jefferies’ David Steinberg lowered his full-year 2017 and 2018 revenue and EPS estimates, citing a potential delay to the launch of store brand OTC Nexium, pricing deterioration within Perrigo’s consumer health business, and less foot traffic at Perrigo’s retailers.

All things considered, putting up growth in 2017 “could prove quite challenging,” he wrote.

Meanwhile, the Perrigo pact isn’t Starboard’s only pharma board reshuffle in recent memory. Last October, it convinced California’s Depomed to add three Starboard nominees to its board and amend some company bylaws that Starboard deemed shareholder unfriendly.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

December 3, 2023

FDA names chief scientist Bumpus as Woodcock’s successor

Life sciences

The Food and Drug Administration’s top scientist Namandjé Bumpus will assume the role of principal deputy commissioner when longtime agency leader Janet Woodcock retires from that role in early 2024, according to an announcement Thursday.

December 3, 2023

AbbVie to buy cancer drug maker ImmunoGen for $10.1 Billion

Life sciences

US biopharma AbbVie has agreed to acquire ImmunoGen in a deal which values the company at about $10.1 billion and gives AbbVie access to flagship cancer therapy Elahere (mirvetuximab soravtansine-gynx), a first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC), as well as a pipeline of promising next-generation ADCs.

December 3, 2023

EuroAPI appoints new Executive Committee members

Life sciences

EUROAPI today announced the appointment of David Seignolle as Chief Operating Officer, succeeding Eric Berger, and Marion Santin as Chief Legal, Compliance, and IP Officer, both joining the company’s Executive Committee. In his new role, David Seignolle will lead the transformation of the Industrial Operations organization.

How can we help you?

We're easy to reach