In a move that signals a potential shift in the ongoing battle for control of pharmaceutical giant Pfizer, former CEO Ian Read and ex-CFO Frank D’Amelio have publicly declared their support for current CEO Albert Bourla. The former executives, in a joint statement released through an investment bank, expressed their confidence in Bourla and the company’s board, distancing themselves from the activist campaign led by Starboard Value.
This development comes just before Starboard’s Jeff Smith, known for his relentless activism, was scheduled to meet with Bourla. Starboard has recently built a stake of around $1 billion in Pfizer, signaling their intent to influence the company’s direction. The firm has a track record of pushing for change at other major corporations, including Autodesk and Salesforce in recent months.
Read and D’Amelio’s statement, issued just days after news of Starboard’s stake emerged, is a significant development in the unfolding saga. While the former executives didn’t directly address Starboard’s campaign, their public support for Bourla and the board could potentially impact the outcome of the activist’s efforts.
Pfizer’s stock price reacted positively to the news, closing up 3.46% on Wednesday. However, the stock dipped slightly in after-hours trading. The company’s stock has seen a modest rise of 1.55% year-to-date, according to data from Benzinga Pro.
The situation highlights the ongoing pressure faced by companies from activist investors, who are increasingly seeking to influence corporate strategy and governance. This case with Pfizer provides a prime example of how such campaigns can unfold and potentially impact not only the company’s direction but also its stock performance.
