Pfizer’s Former Executives Back Activist Investor Starboard’s Revamp Plan

Activist Investor Involvement:
Starboard Value, an activist investor, has taken a $1 billion stake in Pfizer to push for changes aimed at turning around the company.

Former Executives' Support:
Pfizer's former CEO Ian Read and former CFO Frank D'Amelio have pitched Starboard's proposals to several board members, including CEO Albert Bourla, to support the activist's plan for revamping the company.

Board Discussions:
Pfizer's board discussed Starboard's stake and proposals at a meeting on Monday, following the former executives' pitches on Sunday.

Post-Pandemic Challenges:
Pfizer has faced significant challenges post-pandemic, including overestimating demand for COVID-19 products and facing new competition for key drugs like Eliquis and Xeljanz, leading to a significant decline in market cap.

Strategic Missteps:
The company's $70 billion M&A strategy since 2020 has raised concerns, and its initial attempt at a weight-loss pill was disappointing, while it is now developing a new once-daily pill to compete in the obesity drug market.

Starboard's Track Record:
Starboard Value, led by Jeff Smith, has a history of successful activist campaigns, including a complete overhaul of Darden Restaurants and ongoing efforts at companies like Autodesk, Salesforce, and Match Group.