Biotech investment fund backs Actelion in battle with Elliott

Biotech investment fund BB Biotech has come out in support of Actelion Ltd, giving the Swiss biotech group crucial backing in its spat with its largest shareholder Elliott Advisors. Elliott has accused Actelion, Europe's largest biotech company, of eroding shareholder value after a string of product setbacks last year and called for a board shake up as well as for Actelion to consider putting itself up for sale. But BB Biotech, which holds just under 4 per cent in Actelion, said it still had faith in Actelion's board, management and scientists despite the recent pipeline disappointments.

"We have never doubted the competence of Actelion's scientists, the commitment of their management or the veracity of their board," BB Biotech's board of directors said in a statement on BB Biotech's website on Monday. New York based hedge-fund Elliott, which holds nearly 6 percent of the $7.5 billion group, has nominated six new board members, including former Novartis veteran James Shannon, whom it wants to chair Actelion. The battle will come to a head at Actelion's annual shareholder meeting on May 5. Actelion now has the public support of two of the company's biggest shareholders after Rudolf Maag, who holds 4.2 per cent of Actelion's outstanding shares, said he believed Actelion has the right strategy to create value.