Late-stage biotechnology firm, CytoDyn Inc (OTCMKTS:CYDY) on August 3, 2021, announced that director nominations done by an activist group led by Bruce Patterson and Paul Rosenbaum were invalid. The Group attempted on nominating five director candidates for taking over control of the firm’s six-member Board of Directors.
CytoDyn’s bylaws have a standard “advance notice bylaw” for protecting shareholders, requiring disclosures through shareholder nomination as well as nominees for providing all shareholders with necessary transparency to make informed decisions.
The letter by Rosenbaum/Patterson Group not just failed in compliance with CytoDyn’s bylaws but also had more than 50 significant deficiencies. The deficiencies show disregard and a lack of understanding of corporate governance measures.
The firm’s 11-page letter to Mr. Rosenbaum informed on the shortcomings of Form 8-K with the Securities and Exchange Commission.
The company also confirmed on Brazil’s regulatory authority ANVISA (Agência Nacional de VigilânciaSanitária) approving clinical trial protocol for starting patient enrollment in its CD17 trial for severe COVID-19 patients.
The trial in Brazil is aimed at providing ANVISA with the required data for considering advancing the availability of leronlimab to Brazilians infected with COVID-19.
The Phase 3 trial will be done in about 35 clinical sites with 612 patients, who are hospitalized and needing oxygen and aims to prevent the disease from evolving into a more severe case. ANVISA is also reviewing the protocol submitted for another trial for 316 covid patients.
Nader Pourhassan, Ph.D., CytoDyn’s President, and Chief Executive Officer said that the company is looking at potentially some results from two COVID-19 trials in Brazil and also in the US.