Activist Starboard Value Takes $1 Billion Stake in Pfizer

Activist investor Starboard Value has taken a significant position in Pfizer, acquiring a roughly $1 billion stake in the U.S. drug giant. This move comes as Pfizer faces challenges with falling COVID-19 sales and competition for its drugs, prompting the company to seek changes to improve its performance. Starboard Value, led by Jeff Smith, is known for its involvement in various sectors, including technology, and has previously made efforts at companies such as Salesforce and Autodesk.


Starboard Value has reached out to former Pfizer executives Ian Read and Frank D'Amelio for assistance in its efforts to turn around the company's fortunes. Read, who served as Pfizer's CEO from 2010 to 2018, and D'Amelio, the former CFO from 2007 to 2021, have expressed interest in helping Starboard Value in its mission. The specifics of Starboard Value's plans and interactions with Pfizer remain unclear, but the company is expected to advocate for changes to address the drugmaker's current challenges.


Pfizer's stock has been roughly cut in half from its record high in late 2021, following the company's delivery of the world's first COVID-19 vaccine. While the company's shares have been little changed so far this year, they have not kept pace with the S&P 500's 21% rise. Pfizer's CEO, Albert Bourla, has been under pressure to right the ship at the drugmaker, particularly after overestimating future demand for pandemic-related products as the health emergency subsided.

Starboard Value's involvement in Pfizer comes at a critical juncture for the company, as it grapples with falling COVID-19 sales and the need to diversify its revenue streams. The activist investor's influence could potentially impact Pfizer's M&A activities, cost-cutting measures, and long-term financial performance. As Starboard Value works to address Pfizer's challenges, the company's future will depend on its ability to adapt and innovate in the face of changing market dynamics and competitive pressures.