Starboard Invests $1 Billion in Pfizer Turnaround

Activist investor Starboard Value has acquired a $1 billion stake in Pfizer, aiming to drive a turnaround in the company amid declining demand for its COVID-19 vaccines. Starboard has enlisted former Pfizer executives Ian Read and Frank D'Amelio to aid in these efforts, as the company's shares have halved since their peak in late 2021. Under CEO Albert Bourla, Pfizer has faced criticism for overestimating pandemic-related product demand and engaging in costly acquisitions totaling nearly $70 billion, which have not met expected returns. The pharmaceutical giant is focusing on expanding its pipeline with cancer drugs and other new products, such as an anti-obesity pill, to offset declining revenues. Despite recent financial challenges, Pfizer reported strong second-quarter earnings and raised its yearly revenue outlook. Starboard's past involvement in companies such as Salesforce and Match Group suggests a strategic push for corporate changes to boost shareholder value.