Biotech group Elan announced today that two of its directors, Jack Schuler and Vaughn Bryson, had resigned from its board.
Elan said, in a statement to the Irish Stock Exchange, that the men had departed "in accordance with their previously announced intention and their related agreements with Elan".
Mr Schuler and Mr Bryson, seen as dissident shareholders, made allegations earlier this year that Elan had broken corporate governance rules in a series of transactions.
A report by US law firm McKenna Long Aldridge cleared the firm of breaking any regulations. It found "no legal breaches or other wrongdoing of any nature" by Elan management. That report was approved unanimously by the board including Mr Schuler and Mr Bryson, who had been at odds with fellow directors over the investigation.
Elan agreed to suspend an Irish High Court hearing at which it was seeking to block a separate investigation into the same allegations by the two directors "in light of the board's support and acceptance of the McKenna report, and the ultimate implementation of its findings".
Mr Schuler and Mr Bryson were appointed to the board only last year as part of an agreement to settle a campaign by some shareholders against the way the company was being run.
Within months, the men raised new issues. These were triggered by the disclosure of clauses within the deal that saw Johnson Johnson acquire an 18.4 per cent stake in Elan and control of its most advanced Alzheimer’s disease therapy programme.
Mr Schuler and Mr Bryson criticised the failure to disclose key information, including clauses under which Johnson Johnson could have secured a half share in Elan’s blockbuster drug for multiple sclerosis, Tysabri, produced in conjunction with US group Biogen Idec.
Separately, Elan confirmed it expects to name a new chairman of the board by year end.
Shares in Elan were trading at €3.93 in Dublin at 12.15 today, down 3 per cent on the day.
