Third Point continues to demand termination of PDL CEO

By Lisa Kerner

Charlotte, N.C., July 16 - PDL BioPharma, Inc. investor Third Point LLC continued to pressure the company's board to immediately fire chief executive officer Mark McDade.

In a lengthy July 16 letter to the board, Third Point head Daniel S. Loeb expressed dismay "by the lack of progress that the board has made in addressing the concerns that we have set forth, most recently in our meeting in Palo Alto on June 19."

As long as McDade remains, the independent directors are not acting in the best interests of PDL's shareholders or fulfilling their fiduciary duties, Loeb said.

The letter cites "McDade's record of incompetence, egregiously bad business judgment and serious ethical lapses."

In addition to terminating McDade, Third Point's demands include empowering an investment banker to conduct a study of possible strategic outcomes for shareholders.

Loeb reiterated support for "whatever outcome is best for PDL shareholders, so long as a true and thorough process, and careful review by the board, is first conducted."

As previously reported, in his May 31etter to PDL's board Loeb sought the termination of McDade as well as the ouster of chairman of the board L. Patrick Gage and vice president Jeanmarie Guenot.

Loeb and Third Point also sought shareholder representation on the PDL board as well as the addition to the board of Jean-Jacques Bienaime, chief executive officer of BioMarin Pharmaceutical Inc.

Third Point reported a 9.8% stake in the Wilmington, N.C., pharmaceutical company's outstanding stock.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.