Abcam Plc founder Jonathan Milner said he’s taking steps to call an extraordinary general meeting of shareholders to oust the chairman of the biotech supplier he started 25 years ago.
(Bloomberg) — Abcam Plc founder Jonathan Milner said he’s taking steps to call an extraordinary general meeting of shareholders to oust the chairman of the biotech supplier he started 25 years ago.
The British scientist, who was offered a non-executive director position under certain conditions, is now pushing to join the board as executive chairman to replace current chairman Peter Allen, according to a statement Wednesday that confirmed an earlier Bloomberg News report.
“The extraordinary general meeting is an opportunity for shareholders to send a clear message to the Abcam board that we are dissatisfied with the company’s recent performance and that it needs to immediately enhance focus on governance, execution, and cost control,” Milner said in the statement.
Abcam responded that it was surprised by Milner’s public statement. It said the company’s directors had acted quickly to consider Milner’s April 28 request to be re-appointed to the board.
“After informing Dr. Milner that the board was inclined to appoint him, he immediately rejected such invitation and then requested to be named executive chairman, replacing the current chairman,” Abcam said in its statement, adding that it was disappointed by Milner’s “aggressive tactics as he seeks to force the company to agree to his demands.”
Abcam’s American depositary shares, after falling as much as 3.4% Wednesday, closed little changed at $17.21 in New York trading, giving the company a market value of about $3.9 billion.
Milner, who intends to devote himself full-time to Abcam if he’s elected, said the company has drifted away from its core competency in antibodies. The entrepreneur said the current chairman hasn’t held executives to account for poor execution and insufficient cost controls. He’s taking action after failing to reach a constructive solution with Abcam’s board.
“Under the current chairman, the board and leadership team are unable to restore the value of the company and I now feel compelled to return,” Milner said in the statement. “He has created an echo chamber between the executives, himself, and the rest of the board such that no criticisms are allowed.”
Milner is one of the largest shareholders of the Cambridge, England-based company with a 6.3% stake and has recently taken on a more activist role by pushing for better performance and governance. He has been seeking a nomination to Abcam’s board after the company’s annual general meeting on May 17, Bloomberg News reported last week. He was planning to abstain from voting on any resolutions at the AGM, people familiar with the matter said at the time.
Abcam runs an online store selling a variety of protein research tools to life scientists, ranging from reagents and cellular assays to enzymes and imaging products and is sometimes referred to as the “Amazon of antibodies.”
Milner founded Abcam in 1998, helped grow the company through its 2005 initial public offering and served as chief executive officer until 2014. He then became deputy chairman, before eventually stepping down from the board in October 2020. He has since focused on investing in early-stage life sciences companies and other high-tech startups in the UK.
(Updates with company’s response in fourth paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.