(Bloomberg) — Activist investor Starboard Value has taken a stake of about $1 billion in Pfizer Inc. and is seeking to spur a turnaround of the struggling pharmaceuticals giant, according to a person familiar with the matter.
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Starboard has approached former Pfizer executives Ian Read and Frank D’Amelio to aid in its efforts, and they have expressed interest in helping, the person said, asking not to be identified discussing private information. It’s unclear in what capacity they would be involved. Read was Pfizer’s chief executive officer from 2010 to 2018 and chose current CEO Albert Bourla as his successor. D’Amelio was the New York-based company’s chief financial officer from 2007 to 2021.
Starboard’s exact plans and engagement with the company aren’t clear at this time. The activist has found that investors and research analysts are frustrated by the company’s sustained post-pandemic struggles, the person said.
Pfizer declined to comment. Starboard couldn’t immediately be reached for comment outside normal business hours.
Pfizer’s successful Covid-19 vaccine more than doubled the company’s revenue, to $100 billion in 2022 from $42 billion in 2020. The drugmaker has seen its stock price decline more than 50% from its high in December 2021, however, due to increases in spending and an unsuccessful acquisition spree. The shares are little changed this year.
The company’s spate of acquisitions included Seagen for $43 billion, Biohaven for $11.6 billion, Arena Pharmaceuticals for $6.7 billion and Global Blood Therapeutics for $5.4 billion. Starboard considers the purchases to have delivered poor results, the person said, noting that Pfizer just pulled GBT’s main drug off the market and discontinued studies because of adverse side effects.
Starboard contrasts Pfizer’s current woes with the more positive trajectory it was on under its previous leadership team, the person said.
The Wall Street Journal reported earlier Sunday on Starboard’s Pfizer efforts.
(Updates with additional details starting in fifth paragraph.)
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