Leonard Wood, a partner at Goodwin Procter LLP, discussed sector-specific activism trends and proxy dynamics on the latest Activist Investing Today. He highlighted sustained activism in REITs and biotechnology, driven by valuation gaps and capital allocation concerns.

Wood said REIT activism, focused mostly on small and midsize companies, is fueled by discounts to net asset value, governance structures and balance sheet pressures, with campaigns often pushing for asset sales, strategic reviews or board changes.

In biotech, he noted a shift from a science-first market into milestone-driven investing, where capital constraints and uncertain clinical timelines create opportunities for activists to advocate cost discipline, pipeline prioritization and strategic alternatives. Meanwhile, large pharmaceutical firms are facing “patent cliffs” and have a real demand for assets, he added.

Wood added that settlement activity remains robust, with institutional investors increasingly favoring negotiated outcomes, including informal resolutions as well as traditional cooperation agreements.

Listen to the podcast with Leonard Wood below:

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