Former Pfizer Executives Step Back from Starboard Value's Campaign

Former Pfizer Inc (NYSE:PFE) CEO Ian Read and former CFO Frank D’Amelio announced Wednesday evening that they will withdraw from activist investor Starboard Value’s push for changes at the pharmaceutical company.

Read and D’Amelio expressed their “full support” for current Pfizer CEO Albert Bourla and the firm’s top management, expressing confidence in their ability to enhance “shareholder value.”

These remarks were made in a joint statement from Guggenheim Securities, following reports that Starboard had acquired a $1 billion stake in Pfizer and was advocating for measures to improve shareholder returns.

Previously, there were indications that Starboard had the endorsement of Read and D’Amelio. However, it remains uncertain how their withdrawal will influence Starboard’s activist agenda at Pfizer. Notably, reports stated that Starboard's head, Jeff Smith, was scheduled to meet with Bourla soon.

Starboard’s investment in Pfizer arises during a period of declining sales for the company, as the boost from COVID-related sales has diminished. Additionally, Pfizer has been trailing behind competitors in the rollout of popular weight-loss medications, particularly with the rising interest in Novo Nordisk's (NYSE:NVO) Ozempic.

Earlier this year, Starboard was also active in other sectors, acquiring stakes in Starbucks Corporation (NASDAQ:SBUX) and News Corp (NASDAQ:NWSA) to advocate for changes.