Pfizer in the Sights of Starboard Value: Activist Investor Demands Reorientation

The activist investor Starboard Value has acquired a significant stake of around one billion dollars in Pfizer and is urging the US pharmaceutical company to reconsider and refocus its performance, according to sources familiar with the matter. In this context, Starboard has also reached out to Ian Read, a former CEO of Pfizer, as well as Frank D'Amelio, who served as CFO until 2021. Both have expressed interest in supporting the activist investor. Ian Read led Pfizer until 2019, before Albert Bourla took over the position. Bourla played a crucial role in collaborating with BioNTech to develop a COVID-19 vaccine. While Pfizer did not wish to comment on the recent developments, investors criticize the company's current situation in light of sharply declining sales of COVID vaccines and drugs, a weaker launch of the vaccine against the Respiratory Syncytial Virus (RSV), and disappointing clinical results of an obesity pill in development. Since Bourla's appointment, Pfizer's stock price has fallen from about $41.00 in 2019 to $28.58 last Friday. Despite the rapid response to the pandemic through vaccine development, the company has lost some of its luster in the "normalcy" after the crisis. Bourla has also heavily invested in acquisitions, spending around 70 billion dollars since 2020. The acquisitions include Seagen for 43 billion dollars, Biohaven for 13 billion dollars, Arena for 6 billion dollars, Global Blood Therapeutics (GBT) for 5 billion dollars, and Trillium for 2 billion dollars. Some investors have criticized this acquisition strategy, expressing concerns particularly regarding GBT, whose key drug for sickle cell anemia had to be withdrawn from the market due to side effects. The news about Starboard's involvement was first reported by the Wall Street Journal. The investment firm has previously driven changes at News Corp, Salesforce, and Match Group.