Pfizer CEO Faces Mounting Pressure from Activist Investor Starboard Value

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Pfizer CEO Faces Mounting Pressure from Activist Investor Starboard Value

Pfizer Faces Pressure from Activist Investor Starboard Value

Pfizer CEO Albert Bourla is set to meet with activist investor Starboard Value amid growing pressure to improve the company's performance. Starboard has built a $1 billion stake in Pfizer and is calling for a strategy shift.

The pressure on Pfizer comes as its stock has fallen more than 30% over the past two years. Critics argue that Pfizer has mismanaged its COVID-19 windfall and made costly acquisitions that have not boosted its valuation.

Adding to the pressure, two former Pfizer executives, Ian Read and Frank D'Amelio, are reportedly collaborating with Starboard. They have reached out to Pfizer directors, urging them to consider working with the activist investor.

Analysts and investors are speculating about potential management changes. Some believe a change at the top may be necessary, while others caution that a new CEO alone may not be enough to address Pfizer's challenges.

Starboard is expected to push for a more focused development strategy and deeper cost cuts. Critics argue that Pfizer's recent acquisitions lack a clear, cohesive focus.

Bourla has acknowledged missing earnings expectations and weak commercial performance but maintains that investors haven't fully appreciated the potential value of recent acquisitions.

As pressure mounts, Bourla has shown signs of attentiveness to Wall Street critics. He recently hired a former Pfizer bear as chief strategy and innovation officer.

In a bid to streamline its operations, Pfizer recently divested a stake in Haleon. Despite these efforts, the company remains under pressure to deliver better financial returns and strategic clarity.

Pfizer's stock closed on Tuesday at $29.18, down 0.068% during regular trading hours. However, in after-hours trading, the stock gained 0.31%. Year to date, Pfizer's stock has fallen by 1.85%.