Activist investment firm Starboard Value has purchased a stake worth $1 billion in pharmaceutical giant Pfizer, sources familiar with the matter confirmed on Sunday. According to the report, former Pfizer CEO Ian Read and former CFO Frank D’Amelio expressed an interest in assisting Starboard with its investment.
While Pfizer’s profit margins rose following the production and distribution of its COVID-19 vaccine, investors have since punished the company following the gradual decline of its vaccine sales. On Friday, Pfizer’s stocks fell to $28.58, a rampant decline since its price of $41.00 in 2019 when Albert Bourla assumed to role of company CEO.
Since becoming CEO, Bourla has focused heavily on investments as a means of company expansion. Since 2020, Pfizer has spent $70 billion on acquisitions. These include a $43 billion purchase of Seagen, $13 billion for Biohaven, Arena for $6 billion, and $5 billion for Global Blood Therapeutics. There was also the $2 billion purchase of Trillium.