The bickering during proxy fights might be entertaining to watch from the sidelines, but for investors, the vote can have a real impact on the company's future. If the dissidents win, they're likely to take the company in a whole new direction -- for better or worse. Alternatively, the incumbents may claim victory, but there's no guarantee that management will be able to solve whatever problem caused the fight in the first place. Plus, the company is just as likely to have another proxy battle on its hands the next year, much like the one Biogen Idec
So Amylin Pharmaceuticals'
Amylin has been in a funk over the last year and a half as it and marketing partner Eli Lilly
2005 |
2006 |
2007 |
2008 |
|
---|---|---|---|---|
Byetta Sales (in millions) |
$75.2 |
$430.2 |
$636.0 |
$678.5 |
Year-over-year increase |
N/A |
472% |
48% |
6.7% |
Source: Company earnings announcements. N/A = not available. Note: Byetta was approved in April 2005.
Amylin has submitted a marketing application for its once-weekly version of Byetta, designed using Alkermes'
The company is essentially treading water now, waiting for the approval. The best investors can hope for is that the new board members can help keep costs down between now and when once-weekly Byetta is approved early next year.
We've got a little dissidence for Wall Street:
- Analysts say this stock is a double.
- Three cheap stocks our experts like right now.
- Why analysts estimates don't matter.