Institutional Shareholder Services (ISS) Recommends Vermillion Stockholders Vote the WHITE Proxy Card to Elect Dissident Nominee at Upcoming Annual Meeting
PHILADELPHIA, March 11, 2013 /PRNewswire/ -- Robert S. Goggin, Gregory V. Novak, and George Bessenyei, stockholders of Vermillion, Inc. ("Vermillion" or the "Company") acting together as the "Concerned Vermillion Stockholders" or the "Group", today announced that Institutional Shareholder Services (ISS), a leading independent proxy voting advisory firm, has recommended that Vermillion stockholders vote on Concerned Vermillion Stockholder's WHITE proxy card to elect highly qualified nominee, Robert S. Goggin. ISS recommended that Vermillion shareholders "DO NOT VOTE" on the Company's blue proxy card.
In reaching its conclusion, ISS performed a detailed analysis of both sides' positions in the election contest and, in particular, carefully considered, among other things, the Company's total stockholder return, operating performance and business strategy, as well as the strong experience and qualifications of Robert S. Goggin. ISS concluded that shareholders should vote for Mr. Goggin on the WHITE proxy card saying:
"Goggin, an active significant shareholder, appears comfortable in the role of being an advocate for change. As a long-term significant shareholder, his interests are likely to be aligned with other shareholders," and "[Goggin] appears to have intimate knowledge of the company's products and challenges, having invested in and followed the company since 2010. In addition, Goggin has advocated for change at the company since early 2011. Goggin also has a track record and experience representing the interest of a large group of individuals (unions)."
Excerpts from ISS' Analysis & Recommendation
"The sustained underperformance supports the dissidents' argument that investor confidence in management's ability to extract value from its product portfolio has diminished."
Total Shareholder Return:
"It seems the damage to shareholder value and their trust in the company's board has been diminished to the point that is reflective in the company's stock price decline since emerging from bankruptcy. In short, shareholders continue to suffer losses from their investment while the company's share price is at historical lows and the company's future lies uncertain."
"Given the company's underperformance relative to peers and the MUZUSC Index, its deeply and repeatedly unrealistic revenue guidance for its flagship product OVA1, the board's poor management of the Quest Diagnostic alliance, an apparent disregard for shareholder concerns as represented by the inability to call an annual meeting without a court order and threatened delisting, and the continuing misalignment between performance and executive and board compensation, it seems clear the dissident has made a compelling case that change is warranted at the board level."
"Despite the fact that Vermillion's current board have in the aggregate many years of experience in medical diagnostics, the board has been demonstrably unable to halt the erosion of shareholder value and shareholder confidence, much less to communicate and execute on strategy to grow shareholder value. Shareholders would be better served in injecting a sense of accountability by voting FOR dissident nominee Goggin on the WHITE dissident card."
If you have any questions, require assistance with submitting your WHITE proxy card or need additional copies of the proxy materials, please contact:
Patrick McHugh/ Geoffrey Sorbello
(212) 297-0720 or (877) 566-1922 (toll-free)
SOURCE Concerned Vermillion Stockholders