In a late-night reversal, Pfizer’s former CEO and CFO issued a statement saying they now support the company’s existing management over activist investor Starboard Value.
Frank D’Amelio“We have decided not to be involved in the efforts of Starboard Value regarding Pfizer,” ex-CEO Ian Read and ex-CFO Frank D’Amelio said in a statement late Wednesday night. “We are fully supportive of Pfizer Chairman & CEO Albert Bourla, senior management and the board, and we are confident that over time they will deliver shareholder value.”
Read and D’Amelio had been associated with Starboard’s activist stake in Pfizer just days ago, and people familiar with their role said that they’d been approached by the investor and were “happy to help” with its coming campaign against the drugmaker.
The reason for their shocking reversal wasn’t clear. A person familiar with the matter said that later Wednesday afternoon, the former executives took steps to begin issuing the statement, which came out after 9 p.m. Eastern time.
Read and D’Amelio didn’t respond to requests for comment late Wednesday night.
Bourla and Pfizer’s lead independent director are slated to meet with Starboard next week, according to another person familiar with the matter.
Starboard, which has taken a $1 billion stake in the company, is said to be planning a push for strategy changes at Pfizer, whose stock $PFE has lost half its value since a pandemic-era peak.
The unusual backing of the former top managers lent a degree of momentum to Starboard’s effort. How their reversal will impact the activist’s effort is unclear.
Pfizer declined to comment. Starboard didn’t respond to a request for comment.
Editor’s note: This story has been updated with Pfizer’s decline to comment.