Elan has stopped two non-executive directors from launching a parallel investigation over corporate governance at the drugmaker, as criticism spread from shareholders to within its own board.
Elan said today it was granted a High Court injunction to prevent "dissident directors" Vaughn Bryson and Jack Schuler from taking action, believing such a move would prejudice a review the company was taking itself.
Investors in Elan, which co-markets the multiple sclerosis drug Tysabri with US biotech company Biogen Idec, are concerned about potential conflicts of interest involving its chairman and a large severance package for the chief executive.
Some of those investors also want to see at least three directors leave its 14-member board, a poll of 298 shareholders conducted by Danish activist investor Ib Sonderby found today.
Elan criticised Mr Sonderby in an 18-page letter sent to shareholders ahead of a conference call the former stockbroker will hold tomorrow to update investors on his campaign against Elan's management.
"We presume that Mr Sonderby is mostly concerned about the price of the stock as would be his right as a shareholder," chief executive Kelly Martin said in the letter.
"While we cannot directly control the price, we do remain resolutely focused on the fundamentals and improving them," Mr Martin said, reiterating that the trends he expected to deliver a profit at operating level this year would carry into 2011.
Elan said that Mr Schuler and Mr Bryson had threatened to take legal action in the United States which would have interfered with the company's review - commissioned in May - and the results of which would be presented at the next board meeting scheduled for September 15th.
Reuters