Switzerland's Actelion Ltd (ATLN.VX) drew investor interest Friday on hopes a shakeup of the company's top brass could pave the way for a takeover of Europe's largest biotech.

Shares in the group surged more than 4% after investment firm Elliott Advisors Ltd. sent a letter to Actelion's board, asking for chairman Robert Cawthorn and chief executive Jean-Paul Clozel to resign from the board.

The fund, a unit of U.S. hedge fund Elliott Management, also pushed for the election of an independent chairman, who should consider the sale of the firm.

"Pressure is building up on Actelion and CEO Clozel to do something," said Beat Stuber of Zurich-based asset manager Johnson & Stuber. "A takeover is possible. Maybe it's only a question about the price." Johnson & Stuber, which manages asset worth around 600 million Swiss francs, holds Actelion shares.

Actelion has been considered a takeover candidate since last October after several drug development setbacks raised concerns about the company's ability to stay independent.

Criticism of CEO Clozel accelerated during that time. According to shareholders, who declined to be named, Clozel's failed attempt to push for the development of novel drugs has irked investors.

Actelion's hopes to bring sleeping pill Almorexant to market were dashed in January on safety concerns. Its experimental drug clazosentan also failed to meet study goals.

Large shareholders such as Fidelity Management and Swiss investment company BB Biotech AG (BION.EB) have reacted by reducing their holdings in Actelion.

Fidelity, which held 2.88% of the company's shares as of April 2010, according to Swiss bourse data, couldn't be immediately reached for comment.

BB Biotech, which holds about 4.85% of the company's shares, declined to comment on Elliott's action. "We think the stock is undervalued and that Actelion is an attractive company," said Daniel Koller, head of the management team at BB Biotech.

Investors such as Bermuda-based Orbis Investment Ltd, which as of November 4, 2010, held around 3% of the company's stock, and Elliott, which holds more than 5% of Actelion, have built up stakes in recent months.

Orbis declined to comment.

Elliott Advisors has been an active follower of Actelion and last December reached out to the company in private to discuss the firm's future. After several failed attempts to get in contact with the firm, it made its concerns public.

Actelion Friday confirmed the receipt of the letter from Elliott and said its board was discussing the issues, which Elliott wants to have discussed at the company's annual general meeting on May 5.

Potential bidders for Actelion include U.K.-based GlaxoSmithKline Plc (GSK), which has a drug research partnership with Actelion, U.S.-based Amgen Inc (AMGN), Eli Lilly & Co (LLY) and Bristol-Myers Squibb Co (BMY).

No official offer has been made and the companies have repeatedly declined to comment on such market speculation.

Actelion said in November it is in regular dialogue with industry participants, but CEO Clozel repeatedly said the company wants to stay independent.

Despite the criticism of Clozel, the French executive is considered one of Switzerland's most successful managers. The trained cardiologist helped found the company in 1997 out of a spin-off from Roche Holding AG (ROG.VX) and succeeded in bringing blockbuster Tracleer to market. That success made Actelion one of the rare Swiss biotech company's to perform well on the country's stock exchange.

According to analyst estimates, a potential bidder may pay up to 70 francs per Actelion share, valuing the biotech at about 9 billion Swiss francs.

Despite the hedge fund pressure, Bank Sarasin said a bid for Actelion was unlikely as the patent expiry of Tracleer in 2015 could hold off potential bidders.

Shares of Actelion were 4.3% higher at 54.75 francs in late Friday trade.

Company website: http://www.actelion.com

-By Goran Mijuk , Dow Jones Newswires; +41 43 443 8047; goran.mijuk@dowjones.com
Grafico Azioni BB Biotech (PK) (USOTC:BBAGF)
Storico
Da Apr 2024 a Mag 2024 Clicca qui per i Grafici di BB Biotech (PK)
Grafico Azioni BB Biotech (PK) (USOTC:BBAGF)
Storico
Da Mag 2023 a Mag 2024 Clicca qui per i Grafici di BB Biotech (PK)