Sarissa Capital Calls Out Amarin’s Sham Board Refreshment
Sarissa Capital Management has expressed deep concern over Amarin's board governance, highlighting the absence of shareholder representation. In 2022, Amarin's stock plummeted by over two-thirds, translating to a loss of more than $840 million in equity for its shareholders. Key issues include delays in the European launch, challenges in securing reimbursement in Germany, and ineffective management responses that led to significant capital destruction. Sarissa, as Amarin's largest shareholder, is pushing for a special meeting to remove Chairman Per Wold-Olsen and appoint new directors to enhance shareholder interests.
- Sarissa is Amarin's largest shareholder, indicating a significant investment interest.
- Sarissa has a history of creating shareholder value in healthcare companies.
- Amarin stock lost over two-thirds of its value in 2022, equating to over $840 million in shareholder losses.
- Failure to secure reimbursement in Germany, a crucial market.
- Management's slow response to competitive threats, such as the generic launch, resulted in lost sales and credibility.
Sarissa puts little faith in Chairman Per Wold-Olsen’s board refreshment process that resulted in NO SHAREHOLDER REPRESENTATIVES ON THE BOARD
Sarissa believes the board’s refusal to consider shareholder input on the board despite Amarin’s failures indicates the current board does not prioritize interests of shareholders
In 2022 alone, Amarin stock lost over two-thirds of its value, and shareholders lost over
Indeed, Amarin has repeatedly overpromised and underdelivered. Below are three of many examples.
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Vascepa is a great drug with the potential to have a meaningful impact on society. However, since the label expansion for cardiovascular risk reduction, Amarin stock has lost over
90% of its value.†
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Last year, management committed to launching in up to six key European markets and obtain pricing and reimbursement approval in up to eight European markets in 2022. They launched and secured positive pricing and reimbursement decisions in only five European markets. In addition, despite the novel drug’s ability to reduce cardiovascular events and its significant potential to reduce a country’s healthcare costs, Amarin could not secure reimbursement approval in
Germany , a historically top revenue generating country for pharmaceuticals inEurope .
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Amarin’s slow, reactive responses to changing market dynamics have destroyed significant shareholder capital. An alarming example from 2022 is Amarin’s slow response to the US launch of a third generic in
January 2022 that quickly and meaningfully reduced sales via both price and volume. Instead of having a plan ready to enact immediately in response to the long anticipated generic risk, Amarin waited six months, untilJune 2022 , to announce a major reduction in expenses. In that time, significant shareholder capital – and additional credibility of management and the board – were destroyed.
In
Characterizing the board’s interaction with Sarissa as “in good faith” is a gross misrepresentation of the facts. The board, led by Chairman Per Wold-Olsen, showed no sense of urgency in interviewing shareholder candidates for the board and took fifteen weeks to interview three Sarissa candidates. A few of the directors acknowledged following Chairman Per Wold-Olsen’s lead and that the time to interview directors was unnecessarily lengthy. His insistence on a lengthy process confused the duration with quality of process, and ultimately the board rejected adding any shareholder representatives to the board in favor of their own candidates. Shareholders are the owners of the company with a vested interest in the company’s success. Yet the board is devoid of any shareholder representatives.
Sarissa is Amarin’s largest shareholder and has a history of creating significant shareholder value in healthcare companies, including those with cardiovascular drugs such as The Medicines Company. We can only conclude that Amarin’s board does not seek real change and instead wants to remain entrenched at the expense of shareholders.
As detailed in our previous press release††, Sarissa has submitted notice to Amarin to call a special meeting to remove Chairman Per Wold-Olsen from the board and add 7 directors to the board. In accordance with
Many shareholders have reached out asking us how to vote at the special meeting, and we will provide instructions in the coming weeks and ahead of the meeting.
*Calculated between
†Calculated between
††Press release link: https://www.businesswire.com/news/home/20230109005938/en/Sarissa-Capital-Submits-Notice-to-Call-a-Special-Meeting-of-Amarin-Shareholders-to-Add-Directors-and-Remove-Chairman-Per-Wold-Olsen
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CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
The participants in the proxy solicitation are anticipated to include
As of the date hereof and subject to the further explanatory information set forth in this paragraph, funds and other investment vehicles affiliated with
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624,923 |
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25,210,000 |
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17,921,700 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006186/en/
Jean Puong
info@sarissacap.com
Source:
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