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