The global pandemic sent the company’s stock to an all-time high after it delivered the world’s first COVID-19 vaccine, but as the global health crisis subsides, the pharmaceutical giant is moving in a new direction. I had a hard time portraying sexuality. But the company’s stock slumped Monday after reports that prominent activist investor Starboard Value had raised $1 billion in stock in the New York-based company to push for changes it believes could spark a turnaround. rose by 3%.
Pfizer stock hit an all-time high of $61.25 in December 2021 as the company’s COVID-19 prevention and antiviral drug Paxlovid helped billions return to work, school, and public life. The value was recorded. The company is expected to hit $100 billion in sales in 2022, up from $40 billion just three years ago.
However, the company’s stock price plummeted by more than 50%, and the company’s market capitalization subsequently fell by about $180 billion. At the market open on Monday, the stock was trading below $30. That’s partly because the company overestimated demand for its COVID-19 products in the post-pandemic situation, and sales fell to about $58.5 billion last year.
Pfizer also faces challenges from new lower-price competition for blood thinner Eliquis and arthritis drug Xeljanz. Eli Lilly and Novo Nordisk have been leading the way in a booming obesity drug market expected to generate $130 billion in sales by the end of 2010, but Pfizer’s first attempt at a weight-loss drug has been disappointing. Ta. The company is currently developing a once-daily pill that it hopes will eventually compete with Novo’s blockbuster injectable semaglutide, sold as Wegovy and Ozempic.
Pfizer has also made a big bet on cancer drugs as part of its $70 billion M&A strategy since 2020, raising eyebrows from some analysts. Notably, the pharmaceutical giant recently withdrew the sickle cell disease drug it acquired through its $5.4 billion acquisition of Global Blood Therapeutics.
Under current CEO Albert Bourla, who took over in 2019, the company has significantly increased its research and development budget and eliminated its off-patent drug business. Pfizer recently announced a new multi-year cost-cutting program that builds on last year’s plan, but Starboard appears to be exploring further changes.
Starboard has recruited former Pfizer executives Ian Reid and Frank D’Amelio to help with its efforts, and both have expressed interest in helping, according to the Wall Street Journal. Under Reid, the company’s CEO from 2010 to 2018, the company was known for focusing on its core businesses of vaccines and cancer. Meanwhile, D’Amelio served as chief financial officer from 2007 to 2021.
Starboard, led by Jeff Smith, took Wall Street by storm a decade ago when it completely took over the management and board of directors of Darden Restaurants, the parent company of Olive Garden and Longhorn Steakhouse. The hedge fund is currently seeking to abolish the dual class share structure that allowed Rupert Murdoch to control New Corp, and has also recently launched campaigns at Autodesk, Salesforce and Match Group.
