Budge up and shape up, angry investor tells Allergan boss

Appaloosa, the US hedge fund managed by billionaire David Tepper, has called for major and immediate change at Allergan (NYSE: AGN), the Ireland-incorporated drugmaker that is best known for its Botox (onabotulinumtoxinA) product.

In the wake of last week’s poor financial results and the  arrival of a cheaper alternative to Botox, the activist investor has repeated calls for an overhaul of leadership in a letter to the board, urging members to separate the roles of chairman and chief executive, both currently held by Brent Saunders, and to “take meaningful steps to address Allergan’s chronic underperformance.”

The letter states: “This board has ignored similar proposals in the past notwithstanding rising shareholder approval – most recently, nearly 40% voted in favor despite little fanfare or support from an organized campaign.”