Former Pfizer CEO and CFO Withdraw from Starboard Activist Bid

Former Pfizer Inc. CEO Ian Read and former CFO Frank D’Amelio announced on Wednesday evening that they will withdraw from the activist investor Starboard Value’s campaign for changes at the pharmaceutical company.

Read and D’Amelio expressed their full support for current Pfizer CEO Albert Bourla and the company’s management team, emphasizing their confidence in their ability to enhance shareholder value.

Their remarks were made in a joint statement released through Guggenheim Securities, following reports that Starboard had acquired a $1 billion stake in Pfizer and was advocating for measures to increase shareholder returns. Initial reports indicated that Starboard had the support of Read and D’Amelio.

It remains unclear how Read and D’Amelio’s decision to step back will impact Starboard’s activist efforts with Pfizer. Reports indicated that Starboard’s head, Jeff Smith, was scheduled to meet with Bourla in the coming days.

Starboard’s interest in Pfizer arises as the company faces declining sales following a boom during the COVID-19 pandemic. Pfizer is also trailing its competitors in the rollout of weight-loss medications, which have gained attention recently due to the rising popularity of certain drugs.

Starboard has been actively investing in various sectors, having previously acquired stakes in companies like Starbucks Corporation and News Corp to advocate for changes.