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BRITISH BIOTECH: Perpetual may face EGM
By Jonathan Guthrie
Perpetual, the investment manager which holds a 9.5 per
cent stake in British Biotech, said yesterday it might call
an extraordinary general meeting to demand reforms at
the company, including a shake-up of senior
management.
The move would be a further blow to the board of the
embattled company after allegations by Dr Andrew
Millar, who was dismissed on Monday as head of clinical
trials, about the conduct of board directors and the
handling of clinical trials of drugs vital to the company's
future.
The stock exchange is now believed to be investigating
share sales by directors, including founder and chief
executive Keith McCullagh, and the US Securities and
Exchange Commission is assessing whether press
releases on trials of marimastat, Biotech's anti-cancer
drug, were over-optimistic.
Analysts have called for Mr McCullagh to step down.
Bob Yerbury, chief investment officer of Perpetual, who
stressed that his views were personal, said: "There will
have to be changes. I cannot say whether Mr McCullagh
should be replaced. But things cannot continue as
before."
Perpetual is understood to be seeking the support of
other shareholders. It needs another 0.5 per cent to call
an EGM.
The meeting would consider the appropriateness of
British Biotech's commercial strategy. Dr Millar has
criticised plans for the company to become a large
pharmaceuticals business, selling its drugs through its
own sales force.
Mr Yerbury said: "My own view is that small
biotechnology companies should out-license their
products [to big distributors]." He said current spending
of about œ60m a year was "out of kilter" with the
prospects for drugs under development. He also said the
sacking of Dr Millar for discussing company strategy
with Perpetual was "inappropriate".
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