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Investing.com -- Pfizer Inc. (NYSE:PFE) has temporarily avoided a standoff with activist investor Starboard Value LP. According to Bloomberg sources, Starboard did not put forward any nominations for Pfizer's board before the January 25 deadline for the pharmaceutical company's annual meeting in April.
This development takes some strain off Pfizer's CEO, Albert Bourla, who has maintained that the company is set to recover from its sharp downturn after the pandemic. Pfizer, a drug manufacturer based in New York, has seen its shares drop more than 50% since 2021. This decline is attributed to the reduced demand for its Covid-related drugs and a number of high-priced acquisitions, which have raised doubts among investors.
This situation may not be entirely resolved. Starboard, which invested roughly $1 billion in Pfizer towards the end of last year, might still propose alterations to Pfizer's board in 2026, provided the two parties do not come to an agreement beforehand.
Starboard's CEO, Jeff Smith, has previously criticized Pfizer's management for causing a loss of at least $20 billion in market value. He attributed this to ill-advised acquisitions and investments in an uninspiring drug pipeline. Smith suggested in October that replacing Bourla "could make sense."
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