For two summers, a fight between Forest Laboratories and Carl Icahn provided the industry with plenty of drama as the activist investor fought to install a slate of allies on the drugmaker's board. The deadline is again looming to nominate alternative directors, but there is a chance Forest may be able to appease Icahn enough to prevent a third public brawl.
Forest Laboratories will have a new CEO when 2014 dawns. Longtime chief Howard Solomon will step out of that role on Dec. 31, with plans to stick around as chairman till next year's annual meeting, and as a director for some time after that. In the meantime, Forest's search committee is hunting for a replacement, aiming to name someone before year's end.
Forest Laboratories is in dire need of a Bloody Mary for its still-severe Lexapro hangover. The U.S.-based drugmaker fell short of low expectations for the third quarter, thanks to a 41% drop in sales, largely because of generic competition for the blockbuster antidepressant. And the company ratcheted back predictions for its full-year results.
We're wondering whether Forest Laboratories shareholders wish they could recast their proxy votes. The company's third-quarter sales tanked because of Lexapro's cut-rate generic competition, and it cut its outlook, both for revenue and earnings.
What happens when the activist investor who's been dogging your heels for over a year buys a bigger stake in your company? If you're Forest Laboratories, you adopt a shareholder rights plan.
We'd like to be hiding under the dessert cart when Carl Icahn sits down to dinner with Forest Laboratories CEO Howard Solomon. The rabble-rousing activist investor has spent the last several months throwing knives at Solomon, and Solomon hasn't been shy about wielding his own blades.
It appears that weeks of acerbic attacks against the oversight of the Forest Laboratories board and the rule of its octogenarian CEO Howard Solomon has paid off for investor Carl Icahn, getting him a supporter on the board. How effective a single voice can be in what may be a very hostile work environment is hard to imagine.
On the eve of Forest Laboratories' proxy vote, activist investor Carl Icahn is still campaigning. After accusing Forest's board of cronyism and lethargy, after critiquing CEO Howard Solomon's performance--and his son's résumé--Icahn is taking the company to task for a recent FDA warning letter.
It's high noon for Carl Icahn and Forest Laboratories. As the company's annual meeting looms Wednesday, both sides are firing their final shots. Icahn, the activist investor who's had many a proxy-fight showdown with drug companies, is accusing the company of hiding key info from shareholders. And Forest, in essence, is calling him a liar.
There appears to be a slight tremor in the heretofore unyielding force field of support by the Forest Laboratories board for its octogenarian CEO Howard Solomon.