Allergan PLC's investors Appaloosa LP and Senator Investment Group LP want the company to split the chairman and CEO roles and drop its M&A strategy.
In a letter addressed to the board of directors of the Dublin-based and New York-listed specialty pharmaceutical company, the investors suggested Allergan also get a new chairman or CEO from outside the company, replace at least two additional board members, and upgrade management posts in critical operating units.
In the June 5 letter, the investors also renewed their calls for the company to "stop hiding behind an arbitrary debt reduction target as an excuse to preserve the means to pursue a transformative M&A transaction."
"It is time for Allergan's management to concentrate on running a world-class pharmaceutical and aesthetics business and forego thoughts of, or the exhilaration from, an ambitious acquisition strategy," the letter stated.
In response to the June 5 letter, Allergan said that the conclusion of its recently completed strategic review is to create a more focused company and its board has been active in "board refreshment" with the addition of three new directors over the past 16 months.
Appaloosa and Senator Investment had also sent letters to Allergan's board May 7 and April 23.
In the April 23 letter, the investors said the company's decision to show interest in acquiring Irish rare disease specialist Shire PLC "was a waste of valuable time and corporate resources." Allergan had backed out of the potential bid hours later announcing plans.
