EpiPen scandal grounds for removal of Mylan board members, says advisory firm

Institutional Shareholder Services, a major shareholder advisory firm, is urging Mylan stockholders to vote for the removal of 10 board members, including board Chairman Robert Coury and CEO Heather Bresch, reports STAT.

ISS justified its recommendation saying Mylan's board caused "significant destruction" to shareholder value and consistently failed to respond to "warning signs" leading up to the controversy and investigations into the price of EpiPens, according to the report.

"[The] EpiPen controversy, which has seemingly still not run its full course, has laid bare a record of poor stewardship and responsiveness by the incumbent directors," ISS wrote in its recommendation, according to STAT. The firm also took issue with Mylan executive and board members' steep pay increases, despite shareholder losses.

A Mylan spokeswoman told STAT: "We are confident that our shareholders recognize that this board has overseen a period of strong and sustainable long-term growth and that the recommendation and rationale to remove the board and leave the company without any leadership is simply irrational and not in shareholders' best interests."

Shareholders will vote on the board seats during Mylan's annual meeting June 22.

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