Intellia CEO, despite previously being included in Starboard’s five nominees chosen at the end of February to debate against Bristol-Meyers’ board, has been exonerated from inclusion in this debate.
Intellia in their last session traded to a close of $15.54 after opening at $16.58 after highs of $15.58 and lows of $15.08.
Starboard intends to first marshal support from the sufficient number of Bristol-Myers board members to prevent Bristol-Myers’ $74 Billion acquisition of Celgene biotech. Thereafter, it will dispute this acquisition deal.
The CEO has had senior positions in industries dealing in the Pharmaceutical sector like Abbott and Abbvie, which credits him as reputable.
Jennifer Mound Smoter, Intellia senior vice president for external affairs and communications, while talking to Reuters said, “he is not involved. He has a very demanding job as our CEO, and he is on other boards as well.” She, however, did not clear the air on Leonard’s previous inclusion in the five.
Wellington Management, which is a top shareholder in Bristol-Myers, announced its stand against the Celgene deal last week.
Bristol-Myers came out in defense of the deal last Thursday saying the deal would likely result in a market giant in cancer therapy. They touted the deal as capable of achieving this through the merging two of the immense portfolios of drugs for cancer therapy and also by increasing resources in immunology and inflammation.
A Brief History of Starboard
Starboard is not new to this kind of endeavor; it has in the past attempted to prevent deals. It tried to prevent Shanghui International’s acquisition of Smithfield foods in 2013 as well as the sale of B/E Aerospace to Rockwell Collins. It failed to stop both deals
Starboard intends to improve its reputation in the pharmaceutical industry and has been making efforts to this end.
Assertio Therapeutics, coerced by Starboard, sort to make a deal but was unsuccessful. Following this, their shares depreciated by half their value.
Perrigo Company, a drugmaker, has had their shares decrease in value by a third its original since getting Starboard to represent them.