Activist Investor Starboard Takes $1 Billion Stake In Pfizer As The Pharmaceutical Faces Criticism Over Costly Acquisitions

Activist investor Starboard Value has acquired a $1 billion stake in Pfizer, aiming to lead a turnaround for the pharmaceutical company. Starboard has reportedly approached former Pfizer executives Ian Read and Frank D’Amelio to assist. The activist fund criticizes current CEO Albert Bourla's leadership, pointing to a shift from Pfizer's historically disciplined cost structure and focus on novel drugs. Although Pfizer's revenue surged during the COVID-19 pandemic, its stock price has fallen about 30% since 2019, partly due to expensive acquisitions like the $5 billion Global Blood Therapeutics deal. Despite cost-cutting efforts, over $100 billion in shareholder value has been lost since the pandemic's decline.