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Starboard Value reportedly has taken a roughly $1 billion stake in Pfizer, as the activist investor seeks to turn the struggling drugmaker around.
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According to The Wall Street Journal, Starboard has approached Ian Read, a former Pfizer chief executive, and ex-finance chief Frank D’Amelio to help aid its efforts.
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Pfizer shares are rising about 3% in premarket trading but have almost halved since their pandemic peak in 2021, as demand for its COVID-19 vaccines slumped.
Shares of Pfizer (PFE) are rising in premarket trading Monday following a report that activist investor Starboard Value has taken a roughly $1 billion stake in the struggling drugmaker.
According to The Wall Street Journal, Starboard has approached Ian Read, a former Pfizer chief executive, and ex-finance chief Frank D’Amelio to aid its plans to improve the company’s performance.
The hedge fund sees Pfizer under current Chief Executive Officer (CEO) Albert Bourla—who took over from Read in 2019—as lacking the M&A discipline of his predecessor, the report said. Pfizer has spent billions of dollars on buying companies involved in producing cancer drugs, including biotech Seagen for $43 billion last year, since Bourla took over.
Pfizer Stock Little Changed in 2024 While S&P 500 Jumps 21%
Pfizer’s shares have almost halved since their pandemic peak in 2021 as demand for its COVID-19 vaccines slumped. They are little changed this year, versus a 21% jump in the S&P 500.
Pfizer’s shares are rising about 3% on the report but were hit recently after it recalled all lots of its sickle cell disease medicine worldwide because of concerns the drug could lead to severe pain and possibly death in patients.
Pfizer and Starboard didn’t immediately return Investopedia requests for comment.
Read the original article on Investopedia.
