Pfizer Stock Slides 4.63% Amid EU Transparency Controversy

On May 14, Pfizer's stock experienced a consecutive two-day decline, totaling a drop of 4.63%, capturing the attention of market observers. Investors are keenly investigating the underlying causes of this downturn.

Recently, a dispute concerning communication records between Pfizer and the European Commission has resurfaced in the public arena. The EU court dismissed the European Commission's explanation for refusing to disclose text messages exchanged between Ursula von der Leyen and Pfizer CEO Albert Bourla, demanding clearer reasoning. These messages were purportedly exchanged during negotiation talks over Pfizer's COVID-19 vaccine procurement, raising transparency concerns during such critical dealings.

The controversy dates back to early 2021 when the EU endeavored to address a vaccine shortage crisis by securing a substantial purchase agreement with Pfizer. Details regarding this transaction, particularly communications between von der Leyen and Pfizer executives, have remained obscured. In response to these opacity concerns, The New York Times pursued legal avenues to access the messages, although the European Commission maintained that they did not meet the criteria for public disclosure.

In its ruling, the EU General Court highlighted the European Commission's failure to adequately justify its inability to locate or preserve these records. The judgment cast doubts on von der Leyen's standing and posed broader implications for EU transparency and accountability processes. Although Pfizer faces no direct allegations of misconduct, public dissatisfaction persists regarding the opaqueness of vaccine procurement procedures.

Amid this backdrop, investors are advised to exercise caution regarding Pfizer, particularly with political and legal disputes potentially affecting company reputation and operations. Furthermore, the global vaccine market remains fiercely competitive, presenting ongoing challenges for Pfizer in balancing its commercial strategies with public relations. Observers should monitor any forthcoming policy adjustments and market developments of the company within this realm.