ISS Says Puma Biotechnology Is In A 'Critical Stage' Of Turnaround Plan, Urges Investors To Vote Against Proposal By Fred Eshelman

Dr. Fred Eshelman is the founder of Eshelman Ventures, an investment firm that focuses on healthcare companies. The investment firm owns approximately 1 percent of Puma Biotechnology Inc PBYI's outstanding shares and solicited the company to increase the size of its Board of Directors to nine members from five.

Eshelman hoped to gain a seat for himself at the company's Board, along with three other hand-picked candidates.

ISS, a leading proxy advisory firm, announced on Wednesday it is against the proposal.

According to ISS, a near-doubling of Puma Biotechnology's Board "does not appear prudent" at a time when the company is "in a critical stage of its strategic plan."

"This recommendation reaffirms our strong belief that Puma's board is best positioned to build value for all of Puma's shareholders," Puma Biotechnology's CEO Alan H. Auerbach said in a press release. "Eshelman's actions are not in the best interests of Puma's shareholders.

Shares of Puma Biotechnology appear to be unaffected by the news and were trading higher by 0.27 percent at $74.99 Wednesday morning.