Icahn Wants Amylin’s Chairman Ousted

April 15th, 2009
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In a letter today to Amylin Pharmaceuticals Chairman Joseph C. Cook, Jr., Carl Icahn expressed his frustration with the Mr. Cook’s performance and suggested that he needs to be replaced. Mr. Icahn revealed that fellow activist Eastbourne Capital and Amylin's co-founder Ted Greene also share his grievances. Both Mr. Icahn and Eastbourne have proposed their own slates of new directors for Amylin’s upcoming election. Below are some excerpts from Mr. Icahn’s letter:

“You have been the Chairman and/or CEO during the time that an enormous amount of stockholder value has been destroyed and for reasons, described below, a flawed strategy has existed for far too long…Like an ‘imperial’ chairman you have taken steps to entrench yourself that we believe to be unconscionable. You not only have the poison pill but your 2007 indenture has a poison put and your 2007 credit agreement has an even worse poison put. In addition, as a direct result of your poison pill, large stockholders of Amylin, such as my entities, may not have meaningful conversations with other large stockholders such as Eastbourne.”

“Amylin's SG&A is approximately 47% of sales compared with other similar biotech companies(1) whose median SG&A is approximately 22%. As directors, my nominees would seek to have Amylin renegotiate with Lilly to change their commercial agreement. In addition, we believe that the company should engage experts to advise on how to reduce the amount of money being wasted at Amylin. However, at the risk of being facetious, I wouldn't be opposed to making expenditures to discover an antidote for Amylin's poison pill and poison puts.”
See Press Release
For Detailed Investor Profiles on these Investors, click below:
Icahn Associates (Carl Icahn)
Eastbourne Capital Management
Related People: Alexander J. Denner; Brett Icahn; Carl Icahn; Keith A. Meister*; Rick Barry
Related Entities: Black Bear Hedge Funds; High River Limited Partnership; Icahn Partners; Icahn & Co Inc; Icahn Associates; Icahn Enterprises (formerly American Real Estate Partners); Icahn Fund Ltd; Icahn Partners LP; Robertson Stephens*
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles

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