Large PDL BioPharma (NASDAQ:PDLI) shareholder Third Point LLC, run by Daniel Loeb, confirmed what they called a "very disappointing" response to their recent requests and reiterated its demand that CEO Mark McDade step down, citing his misteps including unnecessary spending on the Company's corporate headquarters (Loeb called it the Taj Mahal) as well as wasteful R&D and SG&A spending.
Third Point requested that the Company founder and board member Laurence Korn be immediately installed as acting chief executive officer and chairman.
ThirdPoint said PDLI's Board should act in a similar fashion to MedImmune's (MEDI) board, which announced last week that they engaged Goldman Sachs to explore a sale of the Company.
Third Point ended saying:
In sum, we ask the Board to look past personal loyalty to Mr. McDade and think objectively about his performance and about the Board's duty to shareholders. We are confident that you will come to the conclusion that Mr. McDade must go and that an investment bank should be engaged to explore strategic alternatives expeditiously.
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