Starboard Value Criticizes Pfizer Leadership Over Underperforming R&D and Overpriced Acquisitions

Activist Criticism:
Starboard Value, an activist investor, has intensified its criticism of Pfizer Inc., demanding that the company's leadership be held accountable for failing to deliver on promises of innovation and growth.

Stock Performance:
Pfizer's stock has dropped approximately 50% since 2021, reflecting broader investor frustration with the company's performance.

R&D and M&A Issues:
Starboard argues that Pfizer has underperformed in research and development (R&D) and mergers and acquisitions (M&A), particularly in leveraging the momentum gained during the COVID-19 pandemic.

Market Value Loss:
Despite a $40 billion boost from its COVID-19 franchise, Pfizer has experienced a $20 billion loss in market value since 2019.

Overpaid Acquisitions:
Starboard contends that Pfizer overpaid for its post-COVID acquisitions, with analysts' expectations for sales from these deals being $7 billion lower than Pfizer's target by 2030.

Internal Innovation Challenges:
Pfizer faces challenges with its internal innovation efforts, such as the GLP-1 program danuglipron, where projected 2030 sales have significantly declined.

Return on Investment:
Starboard notes that Pfizer's expected revenue return on R&D and M&A investments is projected at 15% between 2023 and 2030, far below the industry median of 38%.

Financial Impact:
The hedge fund claims that Pfizer would need an additional $29 billion in revenue by 2030 to reach the industry standard, making it unlikely that Pfizer will achieve $79 billion in revenue by 2030.