Appaloosa issued a statement in response to Allergan’s March 6 announcement that its drug, Rapastinel, failed a late stage study for treatment of major depressive disorder: “Yesterday’s announcement that Allergan’s marquee pipeline drug, Rapastinel, had spectacularly failed its Phase III trials should make apparent to all that the company’s “Open Science” business model is broken. With this latest fiasco, we again call on the company to install an independent chairman with suitable experience to bring new leadership to the board and rein in management’s predilection for value-destruction. We view this action as only one in a long list of difficult decisions the board will need to confront, which may include a change in senior management, separation of business units, merger or sale of the entire company. The board’s misplaced fear of “disrupting” Allergan is wearing thin as an excuse for inaction and can only perpetuate further erosion in the shareholders’ investment. In fact, disruptive action is entirely warranted under these circumstances.”
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.