The activist shareholder behind an attempt to replace the CEO of Athira Pharma has suspended his campaign.
Billionaire Richard (Ric) Kayne nominated himself and an associate to the board in March, and recently proffered Ronald Krall, the chief medical officer of GlaxoSmithKline, as a replacement for current CEO Mark Litton. But Kayne pulled back in a letter to the board on Monday, days before the company’s annual shareholder meeting on Thursday.
“It is clear it would be a very close vote. Without a resounding mandate from my fellow shareholders, I fear the future with me on the Board would be very contentious and unproductive, an outcome that I don’t believe would be in the interests of the Company or its shareholders,” said Kayne. “I have therefore decided to suspend my campaign.”
Though he is no longer campaigning for change, shareholders are still allowed to vote for Kayne’s nominees.
Kayne is a supporter of previous CEO Leen Kawas, who resigned from the company last fall in the wake of an investigation into the manipulation of data-containing images in scientific papers she had co-authored. Kawas and Kayne have since co-founded an investment firm, Propel Bio Partners, LP.
