Icahn Gets Another Seat on Biogen (BIIB) Board

Biogen Idec Inc. (NASDAQ: BIIB) said Monday that it has avoided a threatened proxy fight with activist investor Carl Icahn by allowing the appointment of one of his nominees to the company’s board.

The biotech maker of the multiple sclerosis drugs Tysabri and Avonex now has three of Icahn's representatives on its board, but was able to side step a third proxy fight with Icahn in the last three years.

The latest Icahn nominated board member is Dr. Eric Rowinsky, who, along with other Biogen board members Dr. Alexander Denner and Dr. Richard Mulligan, worked with Icahn to take control of ImClone Systems in 2006. Icahn later sold ImClone to Eli Lilly & Co. (NYSE: LLY) in 2008 for $6.5 billion.

To make room for Rowinsky, Biogen has temporarily increased the number of seats on its board from 12 to 13, even though Icahn had lobbied to keep the number of members the same. Biogen also added that it has named Dr. Stephen Sherwin to the company’s board. Sherwin is the chairman and co-founder of Ceregene Inc, a neurology-based biotechnology company.

There are two remaining seats open on Biogen's board and Icahn has said that he plans, along with Icahn Partners, to vote its shares for the Biogen’s nominees.

Shares of Biogen are up 51 cents to $60.14 in midday market movement on Monday.

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