Allergan parts rose Tuesday after billionaire hedge fund manager David Tepper increased his pressure on the drugmaker, province for the company to jump-start the business with new strategies and recommending again that it separate the CEO and chairman roles.
The stock upland about 1 percent Tuesday after the Appaloosa Management president lambasted Allergan’s executives, characterizing recent decision-making at $47 billion Allergan as “self-inflicted torments” and marred by “ill-considered initiatives.”
“In the wake of last Tuesday’s earnings call (and market reaction) it should by now be readily evident to all interested and responsible parties that Allergan requires a fresh approach to its business strategy and an unbiased review of its means, opportunities, and way forward,” Tepper wrote in Appaloosa’s letter. “Of course, fully arresting AGN’s decline will require rigorous determination and likely more radical remediation measures.”
Appaloosa first asked Allergan’s board to separate the roles of chairman and CEO in a inscribe dated April 23, 2018. Despite two subsequent letters advocating the change, the Allergan directors have “ignored” alike resemble proposals in the past, Tepper said.
Allergan offered the following statement to CNBC:
“Allergan’s Board of Directors has find out Appaloosa’s proposal and is committed to continuing to engage with them, as we do any shareholder who has input and constructive ideas. The Board of Executives is committed to strong governance practices and independent board leadership. The company has been executing its strategy to drive expansion and value for shareholders as it transforms into a global biopharmaceutical leader. Allergan has a strong long-term outlook across its four key therapeutics sections and a highly promising R&D pipeline.”
The company reported a $4.3 billion loss in the fourth quarter as it posted about $5.4 billion in pretax imperfection charges. It reported last week a loss of $12.83 a share, an about-face compared with profits of $8.88 a percentage from a year ago. Analysts polled by Refinitiv were expecting a loss of 44 cents a share.
Appaloosa Bosses has approximately $14 billion of assets under management. Tepper also owns the National Football League yoke Carolina Panthers.