Knight Therapeutics CEO says he’ll step down and sell his stake if shareholders side with activist

Knight Therapeutics Inc. CEO Jonathan Goodman says he will step down and immediately sell the 15 per cent stake he has in the company should shareholders side with an activist launching a proxy fight at an upcoming annual general meeting.

Jakobsohn launched a proxy fight this week and nominated a new board of directors. The Israeli executive alleged that Goodman’s conservative business strategy is not reaping rewards for shareholders and accused him of conflicts of interest because a direct competitor, Pharmascience Inc., is run by his brother and father.Goodman said he could remain in his current role even if his board is defeated, but “I’m telling you I won’t.

“Essentially, Mr. Jakobsohn, a 7% shareholder of Knight, wants to take over the board to remove Jonathan Goodman, our founder and CEO, from the company and to gain access to Knight’s cash reserves,” the 64-page letter said. “Why? Because he needs to prop up Medison, his own private company in Israel, which has made less and less money each year since our 2015 investment.”

According to Knight, the proposed bylaw is simply an attempt to disqualify Goodman from his role. It would either result in Goodman having to divest from his shares in Pharmascience or stepping down as CEO of Knight — something he has refused to do after Jakobsohn’s repeated demands.

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