Pfizer (NYSE:PFE) was a stock on the move on Wednesday, and not because of any news generated by the healthcare company. Reports of a meeting between Pfizer’s leader and an activist investor revived the stock, which closed the day more than 3% higher. That gain easily exceeded the 0.7% increase in the S&P500 index.
An activist meeting appears to be imminent
Late Tuesday afternoon, the Financial times (FT) published an article stating that Albert Bourla, CEO of Pfizer, plans to meet with activist investor, Starboard Value. Citing unnamed “people familiar with the matter,” the business newspaper wrote that Bourla will hold discussions with Starboard, accompanied by at least one other member of Pfizer’s board of directors.
That report came just days later The Wall Street Journal announced the news that Starboard had taken an approximately $1 billion stake in the American pharmaceutical giant. That would give it a stake of about 0.6% in the company. While this isn’t a big commitment, it’s enough for Starboard to loudly and publicly advocate for change – the typical MO for activist investors.
According to the FTAccording to sources, Starboard has created an “extensive” slide deck presentation on its ideas for strategy changes at Pfizer. However, it has yet to be released.
Fatigue after the coronavirus
Although Pfizer is a powerful company, it has not been able to shake off its reputation as a one-size-fits-all after its great success as co-developer of the coronavirus vaccine Comirnaty (in collaboration with German biotech companies). BioNTech) earlier this decade. The company’s post-pandemic fundamentals have been unimpressive at times; investors will hope that if a Pfizer/Starboard summit does happen, it will provide good ideas for the former’s future approach.
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Eric Volkman has no positions in the stocks mentioned. The Motley Fool holds and recommends positions in Pfizer. The Motley Fool recommends BioNTech Se. The Motley Fool has a disclosure policy.
Why Pfizer Stock Popped Today was originally published by The Motley Fool
