Elan CEO Is Inept, Misleading & Should Go: Investor
6 CommentsBy Ed Silverman // July 22nd, 2010 // 7:12 am
Kelly Martin is always pissing off one big investor or another. Two years ago, one of them accused the Elan ceo of mishandling the marketing of the Tysabri multiple sclerosis treatment and failing to control costs (back story). He survived a protracted spat by closing offices and striking a complicated and controversial deal with Johnson & Johnson.
Now, another shareholder wants his scalp. In an open letter to the Elan board, Danish investor Ib Sonderby writes Martin has “publicly misled investors, destroyed collaborations with Elan’s corporate partners and extracted millions of dollars in compensation…Every attempt at positive, shareholder-led change has been met with resistance and entrenchment. The list of deeply flawed business decisions and shameless self-dealing grows with every quarter, while shareholders and, more appallingly, patients pay the price.” He also charges the Elan board with “ineptitude and mismanagement” for failing to monitor Martin.
And Sonderby, who founded Zoar Invest and controls holds a 0.3 percent stake, is not shy. He has started a new web site called SaveElan.com, where he displays a laundry list of complaints and charges to make his point. He is also running a poll where readers can vote for the Elan director you most love to hate. The winner so far is chairman Kyran McLaughlin, who recently inspired 28 percent of Elan shareholders to vote against his re-election.
A student of conflicts of interest, Sonderby goes on to charge Elan management and directors with self-dealing, such as paying Davy Stockbrokers $2.3 million for “consulting work” related to the mismanaged J&J agreement; Kyran McLaughlin is vice chairman of Davy. And he accused Elan of mismanaging the Prialt pain drug for years before selling it for an undisclosed sum to a privately held Irish company called Azur Pharma, which he says is run by a former Elan exec. He adds that several Elan execs and directors are part owners.
And he takes them to task for the deal in which J&J was given the right to buy Elan’s rights to Tysabri under a change of control at Biogen. Elan lost an embarassing lawsuit over what was deemed a breach. He also notes Elan failed to disclose J&J was given the right to buy its Alzheimer drugs at fair market value in the event of a change of control.
In a statement sent The Wall Street Journal, Elan says: “Over the last several years, Elan’s board, including the independent directors, have met with investors frequently and taken significant steps to address concerns. In fact, many of the matters Mr. Sonderby raises in the letter have been addressed previously, and we regret that he appears seriously misinformed on others…We recognize that the real issue for all investors is to ensure that Elan is positioned to capitalize on its undisputed strong science for the benefit of patients and its shareholders.”
As to Azur, an Elan spokeswoman tells the paper: “Several current Elan directors have minor shareholding interests in Azur. These directors recused themselves from the section of the board meeting at which the final Azur terms were discussed. Additionally, these directors were not involved in the negotiations with Azur.”
snugpharma
TO THE DANISH PATSY Ib Sonderby
If you lay down with dogs, you will catch fleas.
Open Reply to Ib Sonderby – Open Letter to the Elan Corp. Board of Directors
To Ib Sonderby, So you wish to spew from the gutter. You write: “The list of deeply flawed business decisions and shameless self-dealing grows with every quarter, while shareholders and, more appallingly, patients pay the price”. How dare you impugn the good name of Kelly Martin as though he put himself above ‘patients’. You should be ashamed of yourself, I suggest if you are an honourable person to public-ally apologise to Kelly Martin the person. Ib Sonderby, you state that you are a long-time shareholder of Elan. That does not appear to have advanced a proper appreciation of what has happened as a whole at Elan. You haven’t a clue about the neuroscience talent at Elan. You are ignorant of the events that occurred that necessitated the AIP strategic deal with Johnson & Johnson. A bit more facts and less bad mouthing is warranted on your part. As for the accusation that Kelly Martin was responsible for the delay in the development of the JC virus test. That is just pure popular tabloid bile Ib Sonderby. Are you quite sure you have covered all the bases. Who else do you want to slander! Ib Sonderby, you go on to say that Kelly Martin abandoned effort to sell TYSABRI to Crohn’s patients. What a glib statement, and you dare to talk about the pharmaceutical business! Ib Sonderby, you state: “A cut in R&D expenses while maintaining high SG&A expenses;” That is just plain claptrap. Kelly Martin, as CEO of Elan since 2003 has consistently supported R&D through the most difficult years when Elan was near to extinction. This commitment by Kelly Martin and all at Elan has produced some of the most exciting developments in Alzheimer’s disease. Don’t give me that rubbish that – “there is an alarming loss of scientific talent” That is BS of the highest degree, obviously coming from a person of ignorance of Elan’s R&D personnel.
To Ib Sonderby, I suggest, a little less guttersniping with a modicum appreciation of the facts! http://www.elan.com/rd/drugs_in_development/product_pipeline.asp …..and the decency to public-ally apologise to Kelly Martin for your ‘patients pay the price’ comments…………snug
snugpharma
Still waiting for the Danish Patsy to post this comment!
This Danish Patsy has all the hallmarks of FixElan.com Blog down to the blocking of right a reply or raise serious questions of who lurks in the shadows, like who is the Danish Patsy in cahoots with. If it looks like Jack W. Schuler’s FixElan.com, if it spews garbage like Jack W. Schuler’s FixElan.com, and if targets the same people for character assassination like Jack w. Schuler’s FixElan.com … the it is son of Jack W. Schuler’s FixElan.com . I call on the Elan Board of Directors to investigate whether Jack W. Schuler at Crabtree Partners and current member of Elan Board of Directors, has directly or indirectly by his actions caused to undermine the CEO Kelly Martin and fellow Elan Board of Directors, that Jack W. Schuler has reneged on the existing agreement with Elan, so should forfeit his directorship and pay back the fees to Elan that were part of the agreement. ?????snug
snugpharma
The Danish Patsy knows alot about investments and pharmaceuticals
The Danish Patsy really knows about pharmaceuticals. Perhaps Ib Sonderby should invest more time in the lingerie business, no matter what name you call it……….snug
==========================================================================
Monday 01 October, 2001Zoar Invest
SAR - Sherwood Group PLC
Zoar Invest
1 October 2001
FORM SAR 3
Date of disclosure..1/10/2001…
DISCLOSURE UNDER RULE 3 OF THE RULES GOVERNING
SUBSTANTIAL ACQUISITIONS OF SHARES (’SARs’)
Date of acquisition……SETTLEMENT DATE OCT 3RD 2001 (TRADE DATE SEP 28TH).
Acquisition in………..SHERWOOD GROUP PLC……(name of company)
(1) Class of voting shares Number of shares/rights If rights over shares
(eg ordinary shares) over shares acquired acquired, as opposed
to the shares
themselves, specify
nature of rights
ORD SHARES 2,743,000
……………….. …………….shares …………………
…N/A……….rights
(2) Resultant total holding Resultant total holding Total percentage
of voting shares (and % of rights over shares
of total voting shares (and % of total voting
in issue) shares in issue)
25,693,000…..(23.16%) ……………( %) …..23.16…( %)
(3) Party making disclosure……..ZOAR INVEST……………….
(4) (a) Name of person acquiring shares or rights over shares ZOAR INVEST
and, if different, beneficial owner………………………….
(b) Names of any other persons acting by
agreement or understanding (see SAR 5)……………………….
Signed, for and on behalf of the party named in (3) above……………….
(Also print name of signatory)…..IB SONDERBY…….
Telephone and extension number…..+45 48983881.
Note. Under SAR 5, the holdings of and acquisitions by persons acting by
agreement or understanding must be aggregated and treated as a holding of or
acquisition by one person. Note 3 on SAR 5 requires persons who must aggregate
holdings to disclose certain disposals.
For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs. If in doubt, contact the Panel on Takeovers and Mergers,
Tel. No: 020 7382 9026.
=========================================================================
July 23, 2010 4:16 PM ETTextiles, Apparel and Luxury GoodsIntimas Group Plc
SnapshotPeople
Company Overview
Intimas Group plc engages in the design and sale of ladies intimate apparel. It offers lingerie, swimwear, and sleepwear. The company markets its products under the Lepel, Charnos Lingerie, Ted Baker Intimates, and DM brand names. Intimas Group plc was formerly known as Sherwood Group plc and changed its name to Intimas Group plc in July 2006. The company was incorporated in 1986 and is based in Nottingham, United Kingdom. On July 15, 2009, Intimas Group PLC filed for administration.
firekellynow
The Dane and the rest of us shareholders would like to know why Elan sold Prialt for less than annual sales to a company owned by two Elan directors. It is a simple and fair question. You don’t need pharma experience to recognize organized crime. Apparently you also don’t need pharma experience to run a pharma company.
theyook
Yesterday, saveelan.com blogged significant updated information related to the Azur Pharm. gifting. Elan has not responded and those implicated are not in a very good light until someone does respond to the allocations. Where is the update on Pharmalot?
theyook
Above should read allegations. ;0(