Pfizer on the Rise: Meeting with Activist Investor Boosts Stock

Pfizer's stock experienced a significant increase on Wednesday, despite the company itself not being responsible for any noteworthy news. The reason for the surge was a report about a planned meeting between Pfizer's CEO Albert Bourla and the activist investor Starboard Value, which helped the stock climb more than 3%, far surpassing the S&P 500 Index, which only rose by 0.7%. An article from the Financial Times on Tuesday afternoon revealed that Bourla, accompanied by another Pfizer board member, is to hold talks with Starboard Value. The report is based on information from unnamed sources and follows a Wall Street Journal announcement stating that Starboard had acquired a stake of around one billion dollars in Pfizer, representing about 0.6% of the company. Although this stake is not substantial, it is sufficient to enable Starboard to publicly call for changes – a common practice among activist investors. According to sources, Starboard has prepared a comprehensive presentation with suggestions for Pfizer's strategic realignment, although it has not yet been made public. Pfizer, known as the co-developer of the coronavirus vaccine Comirnaty in collaboration with the German biotech firm BioNTech, has not always been able to impress with its business figures post-pandemic. Investors now hope that the planned meeting with Starboard will bring forth new, groundbreaking ideas for the company’s future direction.