2 Biotech Stocks in Activist Investors' Crosshairs

Activist investors are no stranger to the health-care sector, an industry known for binary events and buyouts. In this video, health-care analyst David Williamson discusses two recent news items catching the attention of investors following the moves of these heavyweight activists.

The first is Forest Labs CEO Howard Solomon's announcement he will call it a career as the head of the company. Legendary investor Carl Icahn, who is a major Forest shareholder and has a board seat, has shown misgivings in the past toward management. He has no comment on this news, but he may use the opportunity to exert his influence on Forest's direction.

Obesity-drug maker VIVUS has found itself in the activist investor crosshairs as well. First Manhattan, which controls 9.9% of the company, has been critical of its unpartnered launch of Qsymia and has recruited Icahn disciple Alex Denner, nominating him for the board of directors along with eight others. If successful on July 15, expect First Manhattan to try to shake up VIVUS by aggressively pursuing a partnership or possibly even a sale.


Who will win the obesity-drug market?
Can VIVUS pick up its lagging sales and fend off the competition, or will Arena Pharmaceuticals reign supreme in the obesity space? If you're in the dark, grab copies of The Motley Fool's premium research reports on VIVUS and Arena Pharmaceuticals to stay up to date. Senior biotech analyst Brian Orelli gives investors the must-know information, including an in-depth look at the obesity market and reasons to buy and sell both stocks. Click now for an exclusive look at Arena and VIVUS -- complete with a full year of free updates -- today.

Follow David on Twitter: @MotleyDavid.

The article 2 Biotech Stocks in Activist Investors' Crosshairs originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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