(Bloomberg) — Pfizer Inc. got a reprieve — at least for now — in its battle with activist investor Starboard Value LP, according to people familiar with the matter.
Starboard did not nominate any directors to Pfizer’s board ahead of a Jan. 25 deadline for the company’s annual meeting in April, according to the people.
The news eases some of the pressure on Pfizer Chief Executive Officer Albert Bourla, who has insisted the company is on track to reverse its steep post-pandemic decline. Shares of the New York drugmaker have fallen by more than 50% since 2021, as demand for its Covid medicines dried up and a series of costly acquisitions drew skepticism from investors.
A Pfizer spokesperson declined to comment. Starboard did not immediately respond to a request for comment.
It’s not necessarily over yet, though. Starboard, which took a roughly $1 billion stake in Pfizer late last year, could still propose changes to the company’s board in 2026 if the two sides don’t reach a settlement before then.
Starboard CEO Jeff Smith has said Pfizer’s management has destroyed at least $20 billion in market value through misguided acquisitions and investment in a lackluster drug pipeline. Replacing Bourla “could make sense,” Smith said in October.
Smith’s activist challenge got off to a shambolic start, with two former Pfizer executives initially backing Starboard’s efforts before reversing course in a late-night statement pledging support for Bourla. Smith then accused Pfizer of threatening the pair with legal action to get the former executives to change their tune. Bourla told Bloomberg in October Pfizer had done nothing “inappropriate” in response to the activist challenge.
Bourla has since diminished Starboard’s criticisms, telling reporters at the JPMorgan Healthcare Conference earlier this month that the activist had called for changes only “on the margins” of the drugmaker’s business and had not created “an aggressive situation.”
“They are in the stock,” Bourla said. “I thank them for the trust, and we move on.”
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