EXEL - Exelixis board member resigns; Farallon gets third board seat in victory

2023-05-08 10:28:00 ET

Exelixis ( NASDAQ: EXEL ) handed investor Farallon Capital a victory in its proxy fight after board member Lance Willsey informed the board Sunday he would resign immediately and the board said it won't challenge Farallon nominee's David Johnson election at the annual meeting.

With Willsey's departure, Farallon, the biggest holder of Exelixis ( EXEL ) with a ~7.2% stake, is expected to have all three of its nominees added to the board.

“This election is about catalyzing change at a company that has long resisted making meaningful adjustments to its R&D priorities and capital allocation approach," Farallon said in a statement on Sunday. "With the anticipated election of all three Farallon nominees, we expect the board to now objectively review the company’s longstanding underperformance and genuinely consider the opportunities for improvement through a more focused R&D effort."

The news comes after Farallon on Wednesday filed definitive proxy materials in its battle for board seats with the biotech company.

Exelixis ( EXEL ) shares fell 1.9% in trading on Monday.

In March Farallon, which has been continuously invested in Exelixis ( EXEL ) since 2018, said the biotech is undervalued and "needs to refresh the board."

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