Healthcare firm could be broken up after activist investor puts pressure on board

X The Business Desk

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An East Midlands healthcare company could be broken up after one of the world’s most infamous activist investors revealed it is pushing the listed company to sell its pharma services division.

Sky News says that Elliot Management, which on Friday (September 10) revealed it owns more than a 5% stake in Clinigen, held talks with the company’s board over the summer with a view to breaking up the company.

The announcement saw shares at Clinigen soar by over by almost 7.5% to almost 709p each on Friday – although they are still a long way from their 52-week high of almost 892p.

In June, Clinigen issued a profit warning which it blamed on the changing mix of its revenues away from its higher-margin Products division. Its shares fell by 30% as a result.

Sky News says that Elliot Management is set to launch a “hostile” campaign in order to force the hand of the Clinigen board into “significant corporate actions”.

Clinigen and Elliott both declined to comment.