The activist investor Carl Icahn has reportedly taken a small stake in Allergan Plc (NYSE:AGN), which will add to the pressure the drugmaker is facing from other activist shareholders, according to multiple news reports.
The investment by Icahn comes as the maker of Botox faces criticism from another outspoken shareholder, Appaloosa Management, a hedge fund that owns about 1% of its shares. CEO David Tepper is calling for Allergan to overhaul its board of directors and divide its CEO role from the chairman one.
“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,” Tepper wrote in a note to Allergan’s slate of directors, according to the business news site CNBC.
Icahn has been a loyal supporter of Brent Saunders, Allergan’s chief executive officer, and five years ago, even lobbied for him to be named the head of Forest Laboratories, which eventually turned into Allergan, according to a Reuters report.
Icahn reportedly believes that Allergan’s stock is undervalued.
Allergan shares rose 4.64% to US$162.59 in early afternoon trade.