GREENWICH, Conn., April 26, 2017 /PRNewswire/ -- Sarissa Capital
Management LP made the following statement regarding Innoviva, Inc.
(NASDAQ: INVA):
Innoviva disclosed that all of its non-management directors
awarded themselves $250,000 worth of
Innoviva stock right after the annual meeting. This grant was
in addition to their yearly cash retainers.
During the proxy contest, Innoviva's board made promises to cut
costs and these promises greatly contributed to their narrow
reelection (other than GSK, a 29% shareholder and Innoviva's only
business partner, an overwhelming majority of shareholders
supported Sarissa at the annual meeting). In fact, GSK
referenced these promises by the Innoviva board to cut costs as a
significant element in determining its vote. Yet, on the same
day of the annual meeting, Innoviva directors awarded themselves
this substantial compensation. We find this continued
over-compensation of directors, relative to comparable companies,
and in spite of promised costs cuts, to be especially
egregious. Even Theravance Biopharma, the company that
Innoviva spun off in 2014, and that, unlike Innoviva, has a real
operating business (e.g., marketed product, sales force and
extensive R&D), pays its directors significantly less than
Innoviva. In 2016, median director compensation at Theravance
Biopharma was $80,000 less than that
at Innoviva.
We ask the Innoviva directors – Mike
Aguiar, Barbara Duncan,
Cathy Friedman, Patrick LePore, Paul
Pepe, James Tyree and
William Waltrip – to explain
themselves to shareholders.
Holding Innoviva to its promises is imperative.
Prior to the annual meeting, Innoviva breached a binding
agreement with Sarissa to add two Sarissa nominees to the
board. We have filed a lawsuit in Delaware court which seeks to enforce
Innoviva's obligations under our binding agreement. We have
also sought to expedite these proceedings so that our two nominees
can be added to the board to begin overseeing the company on behalf
of shareholders. The overwhelming majority of non-GSK
shareholders supported Sarissa at the annual meeting and
emphatically declared that Innoviva needs change.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sarissa-asks-innoviva-directors-to-explain-continued-director-over-compensation-despite-promises-to-cut-costs-300446064.html
SOURCE Sarissa Capital Management LP