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OSI Makes Nice With Investors

The company says it will give shareholders more power in acquisitions.

OSI Pharmaceuticals

(OSIP)

says it's giving shareholders more power in the company's acquisition plans.

According to a new policy put into effect Monday, when the Melville, N.Y., biotech signs an agreement with any company to acquire it for more than 20% of OSI's own market capitalization, shareholders will be allowed to vote on the deal.

OSI also said its board will propose an amendment to its bylaws to allow investors owning at least 20% of the company's shares to call a special meeting of stockholders with 90 days written notice. That proposal will be submitted at OSI's annual meeting on June 14.

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In December, OSI acquired Eyetech Pharmaceuticals, the maker of vision-loss drug Macugen. The move led to some shareholder angst because biotech giant

Genentech

(DNA)

had announced positive results on its experimental vision-loss drug Lucentis around the same time. While Macugen has been proven to stop vision loss, in some cases Lucentis was able to actually improve eyesight.

OSI shares were up 13 cents to $28.69.