By Saabira Chaudhuri
Optimer Pharmaceuticals Inc. (OPTR) said it has begun exploring
a "full range" of strategic options and also named Chairman Henry
McKinnell as its new chief executive, part of a larger overhaul of
top management.
Shares jumped 10% to $11.83 in recent premarket trading. Through
Tuesday's close, the stock has fallen 18% in the past 12
months.
Current CEO Pedro Lichtinger--who had served in the role since
May 2010--has agreed to step down as CEO, president and a board
member. Mr. McKinnell will serve as CEO for the duration of the
strategic review process.
Optimer--which also unveiled a shareholder rights plan--said its
General Counsel and Chief Compliance Officer Kurt Hartman has
agreed to step down and will be replaced by Meredith Schaum.
Additionally, the company has named Mark Auerbach, who has
served as an Optimer director since June 2005, as its lead
independent director.
The changes come after Optimer in April fired Chief Financial
Officer John D. Prunty and Vice President Youe-Kong Shue. It also
removed Michael Chang as board chairman and asked him to resign in
connection with his relationship with Optimer Biotechnology Inc.,
Optimer's 43%-owned Taiwanese-based affiliate.
Optimer said Mr. Chang's removal as chairman stemmed from his
failure to identify and effectively manage compliance and conflict
of interest issues in connection with Optimer Biotechnology's grant
to him of 1.5 million shares, which Optimer said was "potentially
for the benefit of a third party."
Optimer said it had fired Mr. Prunty and Dr. Shue because both
individuals failed to follow proper procedures when they became
aware of the issues related to the issuance of the shares to Mr.
Chang.
Optimer said Wednesday that the latest management changes were
"appropriate" following a review of prior compliance, record
keeping and conflict-of-interest issues observed during the
review.
Optimer added that previously disclosed investigations of the
issues by U.S. authorities are ongoing and it continues to
cooperate with those authorities.
Optimer has hired J.P. Morgan and Centerview Partners as its
financial advisers and Sullivan & Cromwell LLP as its legal
advisers regarding the strategic review.
The company plans to report fourth-quarter results Thursday.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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