Appaloosa LP today issued a statement in response to Allergan plcs (NYSE: AGN) (Allergan) March 6, 2019 announcement that its drug, Rapastinel, failed a late stage study for treatment of major depressive disorder:
Yesterdays announcement that Allergans marquee pipeline drug, Rapastinel, had spectacularly failed its Phase III trials should make apparent to all that the Companys Open Science business model is broken. With this latest fiasco, we again call on the Company to install an independent chairman with suitable experience to bring new leadership to the Board and rein in managements predilection for value-destruction. We view this action as only one in a long list of difficult decisions the Board will need to confront, which may include a change in senior management, separation of business units, merger or sale of the entire Company. The Boards misplaced fear of “disrupting” Allergan is wearing thin as an excuse for inaction and can only perpetuate further erosion in the shareholders investment. In fact, disruptive action is entirely warranted under these circumstances.
Funds advised by Appaloosa LP (Appaloosa) have submitted to Allergan plc (Allergan) a shareholder proposal to separate the roles of Chairman and Chief Executive Officer to be considered at Allergans 2019 annual general meeting of shareholders. This communication is not a solicitation of proxies and Appaloosa is not seeking authority to vote any proxy in connection with Allergans annual general meeting. Shareholders should NOT send us any proxy card. Following the dissemination of Allergans proxy materials for the annual general meeting, shareholders will be able to vote for Appaloosas shareholder proposal by executing and returning the form of proxy card furnished by Allergan in accordance with the procedures set forth in Allergans proxy materials. Shareholders with questions may contact Okapi Partners, Appaloosas Information Agent, toll free in the U.S. and Canada at (877) 869-0171 or at +1 (212) 297-0720 outside of the U.S. or Canada.
Jonathan Gasthalter/Nathaniel Garnick