Top Pharmaceutical Executives Set to Meet with Activist Investor
In a move that could potentially shake up the pharmaceutical industry, Pfizer’s CEO Albert Bourla is scheduled to meet with key executives from activist hedge fund Starboard Value next week. According to sources, Bourla will be joined by Shantanu Narayen, Pfizer’s lead independent director and CEO of Adobe Systems, in talks with Starboard’s CEO Jeff Smith and Patrick Sullivan, who oversees the firm’s healthcare investments.
The meeting comes on the heels of reports that Starboard Value has taken a significant stake in Pfizer, valued at around $1 billion. The activist investor is said to be pushing for changes at the drugmaker, which has struggled to regain its footing after its pandemic-era highs.
Bourla, who took the reins at Pfizer in 2019, has been working to turn the company around through a series of acquisitions and cost-cutting measures. Since 2020, he has spent approximately $70 billion on deals, including the $43 billion acquisition of Seagen last year. However, the company has yet to find a product that can replace the revenue lost from its COVID vaccine and pill.
Pfizer’s recent launches, including its respiratory syncytial virus (RSV) vaccine, have been met with lukewarm reception, and clinical data from an obesity pill it was developing has been disappointing. The exact nature of Starboard’s recommendations for Pfizer remains unclear, but the meeting is likely to be closely watched by industry observers.
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