Former Pfizer Executives Decline Involvement with Starboard Value

(Reuters) – Former Pfizer (NYSE:PFE) CEO Ian Read and ex-CFO Frank D'Amelio announced they will not engage with activist investor Starboard Value, which is advocating for changes to improve the company’s performance.

> “We have decided not to be involved in the efforts of Starboard Value regarding Pfizer,” the executives stated on Wednesday, through a release from Guggenheim Partners, Pfizer’s advisor.

They expressed full support for Pfizer Chairman & CEO Albert Bourla, senior management, and the board, emphasizing their confidence in delivering shareholder value over time.

Prior to this announcement, sources had informed Reuters that Starboard had contacted Read and D'Amelio, who showed interest in collaborating with the activist investor after Starboard acquired a stake of about $1 billion in Pfizer.

Neither Pfizer nor Starboard responded immediately to a request for comment from Reuters.

Next week, Bourla and Shantanu Narayen, Pfizer's lead independent director, are set to meet with Starboard CEO Jeff Smith and Patrick Sullivan, who oversees its healthcare investments, as reported by the Financial Times on Tuesday.

Pfizer’s shares have fallen more than 9% in the past year and currently trade around half of their pandemic-era highs due to a decline in sales of its COVID-19 products.

The company has struggled to identify new products to compensate for the revenue loss from its COVID vaccine and therapeutic pill.

Since 2020, Pfizer has invested approximately $70 billion on acquisitions, including a $43 billion buyout of Seagen last year, while also implementing cost-saving initiatives.