Oust 2 Nautilus directors, advisory firms say

Top proxy advisory firms ISS and Glass Lewis have recommended Nautilus shareholders vote to remove directors Peter Allen and Donald Keeble and replace them with nominees supported by dissident investor Sherborne Investors.

But the advisory firms said in reports issued this week that investors should not remove two other directors, Evelyn Follit and Diane Neal. If all four were replaced with the dissident directors, Sherborne would gain control of the board.

Both ISS and Glass Lewis acknowledge that the company's recent performance has been disappointing. Still, ISS said management has presented a detailed plan to improve the company's performance, while Sherborne has not laid out any specific solutions.

Nautilus stock rose 93 cents, or 15.3 percent, to $7 Friday after D.A. Davidson analyst Reed Anderson increased his share-price forecast for the maker of Bowflex and StairMaster exercise machines, citing the Vancouver, Wash., company's partnership with retailer Dick's Sporting Goods.

Seattle Genetics

Progress on drug triggers payment

Seattle Genetics said Friday it had begun a new midstage clinical trial for its SGN-40 anti-cancer therapy, triggering a $12 million milestone payment from research partner Genentech.

The Bothell company's drug will be tested on patients with relapsed or refractory diffuse large B-cell lymphoma, a type of immune-system cancer. The trial is expected to enroll about 200 patients, the company said in a statement.

Seattle Genetics, the area's second-largest independent biotech company, could receive up to $800 million in payments from Genentech upon hitting research and regulatory milestones, as well as sales royalties and refunds for research, development and other costs.

Dow Jones & Co.

Murdoch installs his own team

Rupert Murdoch installed his own leadership team at Wall Street Journal publisher Dow Jones & Co. on Friday, a week before his acquisition of the company is expected to close.

Les Hinton, who has spent his career at News Corp.'s newspapers, will become CEO of Dow Jones next week, after a Dec. 13 vote of shareholders.

Robert Thomson, editor of The Times of London, will become publisher of the Journal. Dow Jones also owns Dow Jones Newswires, Barron's and news database Factiva.

Compiled from Reuters, Bloomberg News and Seattle Times staff