April 13 Drug company Innoviva Inc said
on Thursday it would undertake a review of its costs, including
executive compensation following pressure from activist investor
Sarissa Capital Management LP.
The news comes two weeks after hedge fund Sarissa Capital
called for a sharp cut in the compensation of Innoviva's chief
executive and the board.
The review will be conducted by a special committee of the
company's independent directors and is expected to be out by
third quarter of this year, Innoviva said.
Sarissa, run by billionaire investor Carl Icahn's former
healthcare lieutenant Alex Denner, has lately criticized the
drug company's cost structure as the two sides square off in a
The hedge fund, which owns 2.72 percent of Innoviva,
according to Thomson Reuters data, in March nominated three
directors to Innoviva's board.
Shares of the drug company, whose annual shareholder meeting
is scheduled for April 20, were marginally down after the bell.
(Reporting by Divya Grover in Bengaluru; Editing by Shounak