And the winner is …..
According to a press release issued by Eastbourne Capital; “Eastbourne Capital Management, L.L.C. announced that, based on voting estimates from its proxy solicitor, MacKenzie Partners, Inc., at today’s Annual Meeting of Shareholders at Amylin Pharmaceuticals, Inc. (NASDAQ: AMLN – News), it appears that both Eastbourne and Icahn have succeeded in electing new directors to the Amylin Board. A preliminary report from the inspectors of election is expected in one to two weeks.”
According to a press release issued by Amylin; “Amylin Pharmaceuticals, Inc.
It should be noted that in the Eastbourne release it stated “it appears that both Eastbourne and Icahn have succeeded in electing new directors to the Amylin Board”, while the Amylin release stated, “shareholders voted to elect at least 10 of the Company’s nominees, including its two new independent nominees,
If the results come in as indicated in the Amylin release this would be a stunning victory for the company. Diabetic Investor believed that shareholders would side with Icahn and Eastbourne basically blaming the current board and management team for the stock’s recent poor performance. It appears as if shareholders instead wanted to send a different message which was while were not pleased with everything you have done (hence the two dissident directors elected) we’re giving you chance to get things moving in the right direction (hence electing 10 of the Company’s nominees).
Diabetic Investor doubts this saga is over as the question everyone must be asking is what will Icahn and Eastbourne do next. Combined the two own nearly 22% of the company and both know that the goose that lays the golden eggs, Byetta LAR is awaiting approval at the FDA. We may have a glimpse of how this will play when looking at what Richard J. Barry, Eastbourne Founder and Portfolio Manager, said regarding the expected results “We want to thank Amylin shareholders for supporting us in effecting change to the Amylin Board and sending a strong message that the past results are not acceptable. We look forward to working constructively with the new Board of Amylin and doing our part to ensure the long-term success of the Company.”
It also noteworthy that Carl Icahn, not known for holding his tongue when it comes to blaming management for all the company’s ill’s , some real others imagined, has yet to issue a statement.
According to Amylin; “IVS Associates, Inc., the independent Inspector of Elections, has indicated that it expects to issue a preliminary tabulation of the vote results early next week. Final results of the Annual Meeting will be announced once they are certified by the Inspector following the customary review and challenge period.”
Diabetic Investor is pleased that this chapter in the Amylin story is coming to an end as they can now move onto the task at hand, namely getting Byetta LAR approved by the FDA and successfully launched into the marketplace. Byetta LAR will be game changing technology and will do more for Amylin’s share price than Carl Icahn would have had he succeeded.
As Diabetic Investor has said before there’s great deal more at stake here than just money, as millions of patients will benefit from Byetta LAR therapy. And quite frankly we’re not all that disappointed to see two dissidents on the board as it will keep management on their toes. As Edward R Murrow once said; “We must not confuse dissent with disloyalty.” Something these new board members will likely remember especially when combined their masters own almost 22% of the company.
The bottom line here is that management has been sent a strong message and while they came out on top they are by no means out of the treacherous woods just yet. In the end Diabetic Investor believes that shareholders gave the company credit for listening to the concerns of the dissidents. It’s no accident that Amylin and Lilly (NYSE:LLY) reworked their existing relationship and that the company eliminated 35% of their field sale force. Most importantly they were able to get Byetta LAR to the FDA as they said they would.
Everyone knows that Byetta LAR has the potential to be paradigm shifting technology and with these other changes in place now was not the time for the drastic change Icahn and Eastbourne were advocating. When it’s all said and done the success of Byetta LAR will benefit all concerned including millions of patients who will be better able to control their diabetes and that’s the best result of all.