Ian Read, chairman and CEO of Pfizer, speaks as President Donald Trump, left, listens during an announcement about a new pharmaceutical glass packaging initiative in the Roosevelt Room of the White House in Washington, DC, on July 2017.
Andrés Harrer | Bloomberg | fake images
Former Pfizer Chief Executive Ian Read and former CFO Frank D'Amelio said late Wednesday they would step away from Starboard Value's campaign at the struggling pharmaceutical giant, just days after news of the activist's involvement broke. .
Read and D'Amelio said they “fully supported” Pfizer CEO Albert Bourla in a joint statement made through an investment bank and confirmed as authentic. The duo had been in contact with several directors shortly before news of Starboard's involvement broke Sunday night, according to people familiar with the matter.
“We are confident that over time they will deliver value for shareholders,” the two former executives said of Pfizer's current board and management. The company's stock is essentially flat for the year and is about 50% below its 2021 highs.
The statement was made through Guggenheim Securities, which has long advised Pfizer on the deal. A bank representative declined to comment beyond the statement.
The change of course comes as Pfizer's board grapples with the activist's efforts, and just days before Starboard's Jeff Smith met with CEO Bourla, people familiar with the matter said. For executives to join and then leave an activist's campaign is highly unusual.
It was also not immediately clear what impact, if any, the breakup would have on Starboard's campaign. A representative for the activist fund did not immediately respond to a request for comment. Starboard, one of the largest and most tenacious activist funds, has amassed a roughly $1 billion position in the pharmaceutical company, CNBC previously reported.
Jeff Smith, managing member of Starboard, has previously mounted campaigns in Autodesk and sales force in recent months. While it typically focuses on the technology sector, it also acquired stakes in starbucks and father of the Wall Street Journal news corporation this year.
Pfizer representatives did not respond to requests for comment.
