Appaloosa renews call to separate chairman, CEO roles at Allergan

February 5, 2019

(Reuters) – Hedge fund Appaloosa LP has urged Allergan Plc’s board to separate the roles of chairman and chief executive officer, it said on Tuesday, a year after making a similar effort.

The David Tepper-led hedge fund has a 0.59 percent stake in the drugmaker, according to Refinitiv data.

Last week, Allergan shelved plans to sell its women’s health business, which it had put on the block in May along with its infectious disease unit to focus on its core businesses.

Analysts have said that Allergan is ripe for reentry of shareholder activism following a disappointing earnings report last week.

“In the wake of last Tuesday’s earnings call … it should by now be readily apparent to all interested and responsible parties that Allergan requires a fresh approach to its business strategy and an unbiased review of its capabilities, opportunities, and way forward,” Appaloosa President Tepper said in a letter to Allergan’s board.

The company did not immediately respond to Reuters’ request for comment.

Allergan’s shares have fallen about 20 percent over the past 12 months.

(Reporting by Tamara Mathias and Manas Mishra in Bengaluru; Editing by James Emmanuel)