Pharmaceutical Giant Pfizer Sees Boost as Activist Investor Takes Major Stake
In a move that has sent shares soaring, activist investor Starboard Value has reportedly taken a significant $1 billion stake in Pfizer, with the aim of turning the struggling drugmaker around. As part of its efforts, Starboard has enlisted the help of former Pfizer CEO Ian Read and ex-finance chief Frank D’Amelio.
Pfizer’s stock has been struggling, having lost nearly half its value since its peak in 2021, largely due to declining demand for its COVID-19 vaccines. Despite this, shares are up around 3% in premarket trading, offering a glimmer of hope for investors.
Starboard’s move is seen as a bid to bring greater discipline to Pfizer’s merger and acquisition strategy, which has been criticized under current CEO Albert Bourla. Since taking over from Read in 2019, Bourla has overseen a string of costly acquisitions, including the $43 billion purchase of biotech firm Seagen last year.
The news comes as a welcome boost for Pfizer, which has faced recent setbacks, including a global recall of its sickle cell disease medicine due to concerns over severe side effects. With Starboard’s involvement, investors will be watching closely to see if the drugmaker can regain its footing and return to growth.
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