UPDATE 1-Penwest expects proxy fight from largest shareholders

* Dissident shareholders own 41 pct in Penwest

* Co sees proxy contest at June 22 annual meeting

April 23 (BestGrowthStock) – Penwest Pharmaceuticals Co (PPCO.O: )
said its two largest shareholders are expected to launch a
proxy contest in June in a bid to wrest management control of
the company.

Shareholders Kevin Tang and Joe Edelman, who together own
41 percent of Penwest, have indicated their intent by proposing
to elect their nominees to the board at the company’s annual
meeting, the company said.

Tang and Edelman had mounted a similar proxy fight last
year to nominate their members to Penwest’s board.

Tang is also a majority shareholder at Vanda
Pharmaceuticals Inc (VNDA.O: ), where he had mounted a proxy
contest last year.

Shares of the company were up as much as 5 percent to touch
a 52-week high of $3.86 on Nasdaq, before losing gains to trade
flat at $3.66 in morning trade.

Stock Market Trading

(Reporting by Shailesh Kuber in Bangalore; Editing by Roshni
Menon)

UPDATE 1-Penwest expects proxy fight from largest shareholders