Activist investor Starboard Value has acquired a $1 billion stake in Pfizer Inc (NYSE:PFE, ETR:PFE) and is pushing for changes at the pharmaceutical giant, according to the Wall Street Journal.
While Starboard's specific plans remain unclear, it has reportedly engaged with former Pfizer executives Ian Read and Frank D’Amelio to support its efforts.
Starboard is concerned that Pfizer’s current leadership, under CEO Albert Bourla, has strayed from a disciplined cost structure and focus on innovative drugs.
The drug giant's stock has struggled, falling 30% since 2019, despite a revenue surge during the pandemic due to its Covid vaccine.
Analysts have questioned the company's acquisition strategy, including its $5 billion purchase of Global Blood Therapeutics, whose key drug was later pulled from the market.