Activist Investor Starboard Value Acquires $1 Billion Stake in Pfizer – WSJ

Activist investor Starboard Value has acquired approximately $1 billion in shares of Pfizer Inc and is advocating for significant changes to improve the company’s underperforming results, according to a report by the Wall Street Journal.

Starboard has reached out to two former Pfizer executives, Ian Read and Frank D’Amelio, who have shown a willingness to assist. Read previously served as Pfizer’s CEO, while D’Amelio was the CFO until 2021.

Pfizer saw substantial benefits from the demand for its COVID-19 vaccine during the pandemic; however, demand has since declined over the past two years. The company has experienced lagging earnings and share performance after misjudging future pandemic-related demand.

Additionally, Pfizer has faced criticism for its lack of discipline in deal-making during the pandemic and has fallen behind competitors Eli Lilly and Company and Novo Nordisk in the launch of popular weight loss medications.

Recently, Starboard has also invested in Starbucks, aiming to drive up the coffee giant’s share price, and has been active in the technology sector as well.