Tags: icahn | proxy | forest labs

Icahn Launches New Proxy Fight Against Forest Labs

Tuesday, 19 Jun 2012 03:39 PM

Investor Carl Icahn nominated four directors to the board of Forest Laboratories Inc. in a second proxy fight against the drugmaker.

Icahn nominated Eric Ende, president of Ende BioMedical Consulting Group and a former biotechnology analyst at Merrill Lynch; Andrew Fromkin, the former chief executive officer of Clinical Data Inc., acquired last year by Forest; Pierre Legault, president and CEO of Stone Management LLC and a former chief financial officer for OSI Pharmaceuticals Inc.; and Daniel Ninivaggi, president of Icahn Enterprises, according to regulatory filing Tuesday.

Icahn, who is New York-based Forest’s second-largest shareholder with 9.9 percent of the stock, failed in August to get his picks elected to the 10-member board. He argued that the company’s directors had been in place too long and let the stock falter more than 50 percent from a 2004 high of $77.59. Forest lost patent protection for the antidepressant Lexapro, its best- selling medicine, in March, and the company in April forecast a 26 percent decline in fiscal 2013 revenue, to $3.4 billion.

The company “has engaged in conduct to enrich and entrench management to the detriment of the stockholders,” Icahn said in a June 18 letter to the Forest Chairman and CEO Howard Solomon that was filed with regulators today.

A Forest spokesman, Frank Murdolo, didn’t immediately respond to an e-mail seeking comment on Icahn’s actions and couldn’t be reached by telephone, his office said.

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