Ariad Pharmaceuticals, Inc.’s (NASDAQ:ARIA) CEO Harvey Berger has stepped down following calls for his dismissal by activist investor Alex Denner and his firm Sarissa Capital. There was a proxy fight between the company and the firm, and the cease fire seems to have cost Berger his job.
Sarissa had called for the imminent retirement of Berger in February and had stated displeasure at the continued employment of Berger. The investment firm had called Berger’s terms of contract “egregious”. There had been safety issues concerning the products of Ariad, which had led to calls for Berger’s removal.
Berger has announced his retirement from the post of Chairman and CEO and has promised to resign as soon as a replacement is found or by the end of the year. According t o the company, Denner is leading the search committee for CEO of the company and the committee is working “expeditiously” to find a successor to Berger.
Berger has been with the company for 24 years. During his tenure, Ariad launched its first product in cancer treatment but the therapy was pulled off the market in 2013 due to serious safety concerns. USFDA relented after some months and amended the safety label of the therapy. However, the company lost billions in value which allowed Sarissa to take a major stake in the company.
With the cease fire at place, Sarissa has taken back its list of new director nominees for Ariad’s annual elections. Sarissa has also set aside its challenge to the lead independent director Wayne Wilson. On of Sarissa’s nominee has been appointed to the post of director in Ariad Pharmaceuticals, Inc.’s (NASDAQ:ARIA).
In a statement, Denner stated that he was happy to work with the board members as the company shifts to the next stage of development. He also expressed confidence that Ariad’s employee will be able to increase the value of the company’s assets.
