Activist hedge fund Starboard Value has acquired a stake in Pfizer valued at approximately $1 billion, signaling its intent to push for a turnaround at the pharmaceutical giant. This development places increased pressure on Pfizer's current leadership to demonstrate concrete results.
Starboard Value has reportedly engaged with former Pfizer CEO Ian Read and ex-CFO Frank D'Amelio, both of whom expressed interest in supporting the activist's campaign. This suggests a potential challenge to the company's current strategic direction and operational efficiency.
The activist investor's involvement highlights concerns regarding Pfizer's performance, particularly its stock trading about 30% lower than in 2019 despite a significant revenue surge during the COVID-19 pandemic. Starboard's focus is expected to be on disciplined cost structure and investment in novel drugs.
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