Pfizer Intrigue: Withdrawal of Two Top Executives from Starboard Value Campaign

In a remarkable move, two former top executives of Pfizer, Ian Read and Frank D'Amelio, have withdrawn from a campaign by the hedge fund Starboard Value aimed at overhauling the pharmaceutical giant. The former executives, both of whom held significant roles within the company, announced in a statement that they fully support Pfizer CEO Albert Bourla and his team and are confident that they will increase shareholder value over time. This withdrawal marks a surprising turn in the high-stakes corporate conflict. It is rare for long-standing executives to align with activist shareholders against their own company. Starboard Value, known for its aggressive investment strategy, had previously built up a $1 billion stake in Pfizer to shake up the company. Insiders report that the hedge fund views Pfizer's management as inefficient and criticizes that the financial returns from the Covid-19 vaccine were invested in an expensive wave of acquisitions. Starboard's recruitment of Read and D'Amelio had caused a stir in the industry, not least because Read had personally appointed Bourla as CEO in 2019. Pfizer had risen to a market value of $171 billion during the pandemic but has since lost about half of its value. Nevertheless, speculation around Starboard's investments pushed the share price up by five percent last week. Plans for a meeting between Starboard representatives and Pfizer's top management, including lead independent director Shantanu Narayen, are underway. Neither Starboard nor Pfizer has been willing to comment further at this time.