Media reports indicate that activist investor Starboard Value has acquired approximately $1 billion worth of shares in Pfizer (PFE, Financial). Following this news, Pfizer's stock rose nearly 3% in pre-market trading. Starboard Value is reportedly in discussions with Pfizer's former CEO, Ian Read, and former CFO, Frank D’Amelio, to assist in enhancing the company's performance.
The hedge fund has expressed concerns that Pfizer's current CEO, Albert Bourla, who succeeded Read in 2019, lacks the acquisition discipline of his predecessor. Since taking the helm, Bourla has led Pfizer through several billion-dollar acquisitions, including a $43 billion purchase of biotechnology company Seagen last year, aimed at expanding its cancer drug portfolio.
Pfizer's stock price has nearly halved since the peak of the COVID-19 pandemic in 2021, attributed to a significant decline in demand for COVID-19 vaccines. In 2024, Pfizer's stock has shown little change, while the S&P 500 index has climbed 21% during the same period.
The reports of Starboard's investment gave Pfizer's stock an approximate 3% boost. Recently, Pfizer's share price experienced some pressure due to a large-scale global recall of a sickle cell disease drug over concerns that it could cause severe pain or even death in patients.
