Alkermes beats back board room challenge from Sarissa Capital Management, all directors re-elected - sources (updated)

Alkermes

29/06/2023 14:57

(Adds second source, details on campaign)
    By Svea Herbst-Bayliss
       NEW YORK, June 29 (Reuters) - Shareholders in Alkermes
have re-elected all of the biotechnology company's directors,
according to two sources familiar with the matter on Thursday,
dealing a blow to hedge fund Sarissa Capital Management which
pushed to put three candidates on the board.
        Sarissa, which owns 8.5% of Alkermes, has long
criticized the company's stock price and how the biotechnology
company is run, and nominated three candidates, including its
co-founder, Alex Denner, as director candidates to the 11-member
board.
  
        But investors in the biotechnology company, which is
valued at $5.3 billion, stuck by all incumbents in one of the
year's most closely watched proxy contests.
  
        They also ignored the recommendation of influential
proxy advisory firm Institutional Shareholder Services which had
urged they elect one of Sarissa's candiates, Dr. Sarah
Schlesinger, to the board.
  
        Representatives for the company and Sarissa could not be
reached for comment.
  
        Alkermes had previously refreshed the board with new
directors several times in recent years and has had success in
developing and bringing new drugs to market. But it also saw
costs climb with SG&A spending as a percent of sales trending
higher than rivals.
  

 (Reporting by Svea Herbst-Bayliss)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))