Velan Capital: Continued lack of transparency at Progenics extremely concerning
Velan Capital, one of the largest stockholders of Progenics Pharmaceuticals, announced its disappointment with the company's Q2 results and lack of metrics to track future performance, and highlights key issues that illustrate the company's continual mismanagement under the troubling status quo. Velan stated, in part, "While the company mismanages its key assets, it compounds its mistakes by focusing on distracting projects such as AI that do not add significant value and only serve to reduce the time spent on commercializing AZEDRA and advancing its product pipeline. Stockholders deserve more information and clarity. To Velan, the continued lack of transparency at Progenics is extremely concerning, particularly given CEO Mark Baker's history of wrongfully stifling a whistleblower who thought Progenics was misleading stockholders. We believe there might even be more recent examples of such behavior. Under current guidance and without departure from the status quo, the company's potential will continue to be squandered at the expense of stockholders. The Board claims to seek new director candidates with applicable supply chain and commercialization expertise - skills that appear absent from the current Board and management team. We have identified potential candidates that have such expertise (who we understand have not been contacted by the company or by its costly executive search firm), yet the company has not welcomed our repeated outreach attempts to reach a constructive resolution. As previously communicated to the public and to the Board, Velan's preference has always been and continues to remain reaching an appropriate settlement to put the company on a better path and to instill much needed accountability in the boardroom. Stockholders have spoken through their votes at last month's annual meeting and we believe the mandate is clear. Without an appropriate settlement that reflects the degree of change desperately needed at PGNX, we will likely be forced to take action yet again on behalf of all stockholders, including by seeking to remove and replace members of the Board."