The US pharmaceutical company Pfizer has lost an impressive $177 billion in market capitalization since the peak of the pandemic, as shares have fallen by more than 50 percent. This drastic loss in value reflects the decline in demand for Covid-19 vaccines and unsuccessful product developments, particularly in the area of anti-obesity medications.

While Pfizer greatly benefited in 2022 with a revenue of over 100 billion US dollars due to Covid-19 vaccines, sales declined as demand for the vaccines waned. Additionally, unsuccessful attempts to develop an effective obesity medication led to further financial burdens. Despite investing over 60 billion dollars in acquisitions in the past two years, the company was unable to rely on previous profits.

Amidst these challenges, activist investor Starboard Value has invested a billion dollars in Pfizer and demanded the removal of former CEO Ian Read as well as former CFO Frank D’Amelio. Starboard sees Pfizer as an ideal target for active management to correct the strategic missteps of recent years. However, the investor's plans are still unclear, as Starboard has not announced any concrete measures.

Pfizer's current CEO Albert Bourla, who was selected as the successor by Ian Read in 2019, is at the center of criticism. Bourla has raised high expectations with expensive acquisitions such as the $43 billion purchase of the loss-making cancer biotech company Seagen. Despite the hope that Seagen's drugs will generate $10 billion in revenue by 2030, the overall success of this strategy remains questionable, especially since Pfizer's total revenue last year was $58.5 billion.

Additionally, Pfizer recently abruptly removed the drug Oxbryta, a treatment for sickle cell disease, from the market, further unsettling investors. The company's return on capital has dropped from over 19 percent in 2022 to just 2.2 percent, highlighting the need for drastic cost reductions. Bourla has therefore announced extensive savings measures, including 4 billion dollars this year and an additional 1.5 billion dollars by 2027.

Pfizer's financial figures show that the company continues to face significant challenges despite high investments and strategic realignments.