Starboard Takes $1 Bln Stake In Pfizer, Pushes For Major Changes : Report

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(RTTNews) - Activist investor Starboard Value has taken a roughly $1 billion stake in Pfizer (PFE) and is advocating for significant changes to improve the company's underwhelming performance, the Wall Street Journal reported citing sources familiar with the matter.

While the activist's specific plans remain unclear, Starboard has reached out to former Pfizer CEO Ian Read and ex-finance chief Frank D'Amelio, both of whom have shown interest in supporting Starboard's turnaround efforts, the Journal reported.

Pfizer had a market value of about $162 billion as of Friday.

Pfizer experienced substantial demand for its COVID-19 vaccine during the pandemic; however, demand has since declined over the past two years. This has led to a drop in earnings and share performance, as the company overestimated future pandemic-related demand, the report said.

Additionally, Pfizer has faced criticism for a lack of discipline in its pandemic-era acquisitions and has fallen behind competitors like Eli Lilly and Company (LLY) and Novo Nordisk (NVO) in launching popular weight-loss medications.