Forest Laboratories Inc. (FRX) said it received notice that one
of billionaire activist investor Carl C. Icahn's affiliates intends
to nominate four candidates for Forest's nine-member board.
"While we have not yet had a chance to meet with Mr. Icahn to
discuss his ideas for the company, we welcome constructive input
from all of our shareholders," said Chairman and Chief Executive
Howard Solomon.
All of the directors are up for re-election and the
pharmaceutical company said its nominating and governance committee
will evaluate the nominees and make a recommendation.
Icahn is well known for his efforts to push for change in
boardrooms. Some of his more recent targets include Mentor Graphics
Corp. (MENT) and Dynegy Inc. (DYN).
High River L.P.'s slate includes Alexander J. Denner, a managing
director of entities that advise Icahn-managed hedge funds; Dr.
Richard Mulligan of the Harvard Medical School; Lucian A. Bebchuk,
professor of law, economics, and finance and director of the
program on corporate governance at Harvard Law School; and Dr. Eric
J. Ende.
High River also informed Forest Labs that it and affiliated
entities own about 6.5% of the company's stock outstanding.
Forest Labs made headlines in late April when it was reported
the Department of Health and Human Services intended to exclude
Solomon from doing business with the federal government, which
could prevent Forest Labs from selling its drugs to the
government--a major customer of all drug companies.
Like many drug makers, Forest Labs has sought to partner with
drug developers to bolster its pipeline. The company recently
completed its $1.2 billion acquisition of Clinical Data Inc. (CLDA)
in a bet that antidepressant Viibryd can help offset the looming
loss of patent protection for Forest Lab's Lexapro, a depression
treatment and its main money maker, and Alzheimer's drug
Namenda.
The company also reported in April its fiscal fourth-quarter
earnings soared, absent prior-year licensing costs, as revenue rose
7.8%.
Shares closed at $37.95 Friday and were inactive premarket. The
stock has risen 47% over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com