Biogen conflicts cry out for boardroom therapy

Alkermes

15/06/2023 15:56

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, June 15 (Reuters Breakingviews) - The
departure of pushy investor Alex Denner as a director, with his
romantic partner tipped to step in, adds to the $44 bln
biotech’s struggles. Even in a cozy industry, such a brazen idea
beckons another activist. It doesn’t help Denner’s case at
Biogen-partner Alkermes either.
    
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    CONTEXT NEWS 
    Biogen said on June 12 that three directors, including pushy
hedge fund manager Alex Denner, would not seek re-election to
the board. 
    The company nominated Susan Langer to fill one of the
vacancies without disclosing that she is Denner’s live-in
romantic partner or that they have a child together. 
    Sarissa Capital, the firm Denner started, is seeking three
board seats at Alkermes, another biotech company that partners
with Biogen. Sarissa owns an 8.5% stake in Alkermes. This is the
third time the firm has challenged the Alkermes board.
    Biogen licensed worldwide rights to multiple sclerosis drug
Vumerity and related intellectual property from Alkermes, in
exchange for milestone payments and royalties. Biogen generated
$553 million in revenue last year from Vumerity.

 (Editing by Jeffrey Goldfarb and Streisand Neto)
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