Supports Alkermes' Existing Board and Notes Strong Positive Momentum
Shares Board's Belief that Sarissa's Nominees Would Not Be Additive to the Board
Notes Alkermes Board is "sufficiently independent, qualified and capable to oversee the Company"
Reveals Material Underperformance at Majority of Companies During Sarissa Nominee
In making its recommendation, Glass Lewis noted1:
- "[W]e believe the Company has been exhibiting strong positive momentum in terms of its operating and share price performance, particularly since the announcement of the Value Enhancement Plan."
- "The Company's TSRs for the more recent medium-term periods rank in the upper quintile of the corresponding ranges of TSRs observed in both the
Glass Lewis Peer Groupand the 2023 Proxy Peer Group. We also see that the Company has meaningfully outperformed its peers in the seven-plus months since the announcement of the planned spin-off of the oncology business. Our findings suggest that the Company's TSR has largely continued on an upward trajectory, on both an absolute and relative basis, through the more recent end date."
- "We see that between CY2020 and the year-to-date period ended
June 16, 2023, the average forward revenue trading multiple of the Company has expanded by over a full turn, whereas the peer group multiples have contracted by around 2.6 and 3.5 turns."
- "[T]he Dissident is arguing that the Company is subscale and over-extended in its business focus. Yet, it appears to us that the Company is already taking meaningful steps to address Sarissa's stated concerns."
- "[W]e believe the recent developments at Biogen regarding
Dr. Dennerrepresent, at a minimum, poor optics in the context of this proxy contest, as investors may reasonably question whether the arrangement of having a close personal partner of Dr. Denneron Biogen's board truly resolves the Company's stated concerns regarding a potential conflict of interest."
- "[T]he Company has been undergoing a steady board refreshment in recent years, and we believe the current board is, on balance, sufficiently independent, qualified and capable to oversee the Company. Therefore, we believe shareholder support of the Dissident's slate is not warranted at this time."
- "[W]e believe the Dissident has not presented a sufficiently compelling case to warrant the board changes it is seeking here. In our view, the Company has been reasonably responsive to the concerns raised by the Dissident over the years."
In addition, the Glass Lewis report thoroughly reviewed each
- "[T]he Company notes it already has extensive relevant expertise on the board – 8 of the 11 directors have life sciences industry experience, 7 of the 11 directors have scientific expertise and/or R&D expertise, and 4 of the 11 directors possess Doctor of Medicine degrees."
- "[O]f the four public companies at which
Dr. Schlesingerhas served as a director, three of those companies have materially underperformed the industry index during her board tenure."
The Board Recommends Shareholders Vote "FOR" its
The Board has nominated seven director nominees for re-election to the Board at the Annual Meeting:
There are three easy ways to vote:
Visit the website shown on the
Dial the toll-free number shown on
Mark, date, sign and return the
If shareholders have any questions about how to vote, or need assistance in voting, they should contact the firm assisting Alkermes with the solicitation of proxies for the Annual Meeting:
Toll-Free at (877) 750-8334 (toll-free for those calling from the
+1 (412) 232-3651 (for those calling from outside the
To learn more about Alkermes' Board nominees, business strategy, and strong recent performance, please visit www.AlkermesValue.com.
Certain statements set forth in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not limited to, statements concerning the Company's expectations concerning its future financial and operating performance, business plans or prospects, including its ability to execute on its strategy and create and deliver growth and shareholder value and its ability to achieve long-term profitability. The Company cautions that forward-looking statements are inherently uncertain. The forward-looking statements are neither promises nor guarantees and they are necessarily subject to a high degree of uncertainty and risk. Actual performance and results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties, including that the Company may not be able to achieve long-term profitability or its profitability targets in a timely manner or at all; the results of the Company's development activities may not be positive, or predictive of final results from such activities, results of future development activities or real-world results; the FDA or regulatory authorities outside the
Important Additional Information and Where to Find It
The Company has filed its definitive proxy statement, accompanying WHITE proxy card and other relevant documents with the
1 Permission to use quotations neither sought nor obtained.
View original content to download multimedia:https://www.prnewswire.com/news-releases/independent-proxy-advisory-firm-glass-lewis-recommends-alkermes-shareholders-vote-for-all-seven-of-the-companys-highly-qualified-director-nominees-301856284.html