Pfizer Inc. has received a temporary reprieve in its ongoing conflict with activist investor Starboard Value LP, as sources indicate that Starboard did not put forward any director nominations for Pfizer’s board ahead of the January 25 deadline for the company’s annual meeting scheduled for April. This development alleviates some pressure on Pfizer’s CEO, Albert Bourla, who has maintained that the company is on track to recover from its significant post-pandemic decline. Since 2021, shares of the New York-based pharmaceutical company have plummeted by over 50%, largely due to a decrease in demand for its Covid-related treatments and skepticism surrounding several expensive acquisitions. A spokesperson for Pfizer declined to comment, and Starboard did not respond immediately to requests for comment.
However, the situation may not be fully resolved. Starboard, which acquired approximately a $1 billion stake in Pfizer late last year, retains the option to propose changes to the board in 2026 if an agreement is not reached beforehand. Starboard CEO Jeff Smith has criticized Pfizer’s management for allegedly erasing at least $20 billion in market value through poor acquisition decisions and a lackluster drug pipeline, suggesting that replacing Bourla “could make sense.”
Smith’s activist campaign faced early challenges, as two former Pfizer executives initially supported Starboard’s efforts but later retracted their support in a late-night statement backing Bourla. Smith accused Pfizer of threatening legal action to influence the former executives’ change of heart. In response, Bourla stated that Pfizer had acted appropriately regarding the activist challenge and downplayed Starboard’s criticisms, asserting that the activist’s calls for change were only “on the margins” of the company’s operations. Bourla expressed gratitude for Starboard’s investment, stating, “I thank them for the trust, and we move on.
