Former Pfizer CEO Ian Read and former CFO Frank D’Amelio announced their withdrawal from Starboard Value’s activist campaign against Pfizer. This news comes just days after it was revealed that Starboard had taken a significant stake in the pharmaceutical company.
Read and D’Amelio, in a joint statement, expressed their support for Pfizer’s current CEO, Albert Bourla, and the board, indicating their belief in the company’s ability to generate shareholder value over time. Their statement was issued through Guggenheim Securities, a financial institution that has long been a strategic advisor to Pfizer.
The former executives revealed that they had been in contact with several Pfizer board members just before the news of Starboard’s stake emerged. Their unexpected exit from Starboard’s efforts is unusual, especially considering that activist campaigns often rely on former leadership figures to lend credibility and weight to their initiatives.
Despite this, Read and D’Amelio expressed confidence in the current Pfizer management to steer the company forward effectively, even as its stock performance has been relatively stagnant and is down approximately 50% from its 2021 peak.
Former Pfizer Executives Withdraw Support from Starboard’s Activist Campaign, Back Current Leadership
Starboard Value, led by Jeff Smith, is known for its aggressive activism in companies across various industries. It has built a $1 billion stake in Pfizer, as reported by CNBC, and is pushing for changes in the company’s operations.
The activist fund has been meeting with Pfizer’s leadership as part of its strategy to influence the company’s future. However, it remains unclear how the sudden withdrawal of Read and D’Amelio will impact Starboard’s campaign or its negotiations with Pfizer’s board.
The timing of the withdrawal is significant as Jeff Smith is set to meet with Pfizer CEO Albert Bourla. This adds further complexity to the situation, as Starboard’s campaign could face setbacks without the endorsement of former high-level executives like Read and D’Amelio.
Typically, such executives play a critical role in providing insider perspectives during activist campaigns, and their departure could weaken Starboard’s position in its discussions with Pfizer’s board and management.
Starboard has gained a reputation for mounting successful activist campaigns in several companies, including tech firms like Autodesk and Salesforce, and more recently in companies like Starbucks and News Corp.
However, its focus on Pfizer, a major player in the pharmaceutical sector, marks a shift in strategy for the activist fund. The full implications of Read and D’Amelio’s exit from the campaign and its effect on Starboard’s efforts at Pfizer remain to be seen, as the activist fund has yet to respond publicly to the development.
