Looking at the chart yesterday, I was anticipating a big move and luckily it was to the upside. Why the big movement? Not really sure, not able to find much news.
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First Manhattan Company (FMC) added some heavyweight muscle on
Thursday to its bid to shake up the board of drugmaker
Vivus Inc(VVUS) by naming former
Carl
Icahn top lieutenant
Alex Denner and two others to its
slate of proposed nominees.
Vivus (VVUS) shares
rose as much as 11 percent after First Manhattan, which has nearly a 10 percent
stake in
Vivus(VVUS),
expanded its slate of proposed directors from six to nine, including Denner.
Denner, chief investment officer
Sarissa Capital Management, has
served on boards of biotechnology and other healthcare companies such as
Biogen Idec(BIIB) and ImClone
Systems, later bought by Eli Lilly and Co. Denner also is a founding partner of
Sarissa, which owns about 2 percent of outstanding
Vivus(VVUS) shares. Jumping into the
Vivus(VVUS) proxy fight is one
of his first public forays since starting his own fund.
"In every area that needs to be fixed we want to attract the highest quality
human capital,"
Sam Colin, senior managing director at FMC and
a board nominee, said in a telephone interview.
The other two nominees added to the FMC slate are
Rolf Bass,
who has an extensive European pharmaceutical regulatory background, and
Mel Keating, who has expertise in corporate turnarounds.
Asked about the choice of Denner, Colin said, "What we wanted first and
foremost was someone with Alex's track record."
"There is no one else like
Alex Denner. He's not only
incredibly intelligent, incredibly experienced, very thoughtful, he's easy to
get along with and very helpful in contentious situations where people's
emotions can get the better of them," Colin said.
Denner had been head of healthcare investments for billionaire investor
Icahn, and a regular on many of Icahn's proposed director slates.
FMC, in a statement, called its slate of nominees a "clearly superior
alternative to
Vivus'(VVUS) current board of directors," adding
that its nominees offer independence from management.
It has been agitating for change at
Vivus(VVUS) since March over the company's
disappointing handling of the launch of its diet drug Qsymia, which won U.S.
approval in September. Even with Thursday's share gains,
Vivus'(VVUS) stock is worth half of what it was
last July.
Another top investor,
QVT Financial LP, had previously publicly
said that
Vivus(VVUS)
should be sold. Analysts and other investors have been calling on
Vivus(VVUS) to find a
pharmaceutical company partner with deep pockets and a large sales force to help
get Qsymia off the ground.
Vivus (VVUS) reported
Qsymia sales of only about
$4 million in the first quarter.
"They've got the right asset and the fix is having the right people behind
the asset," Colin said of Qsymia. "It should be a huge drug."
Vivus' (VVUS) board of
directors is scheduled to be chosen at its annual shareholders meeting on
July 15. Its shares closed up 7.2 percent at
$14.50 and had climbed as high as
$15.04 earlier
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