(Reuters) – Activist investor Starboard Value has taken a stake worth about $1 billion Pfizer (NYSE:) wants the US pharmaceutical giant to make changes to turn around its performance, sources familiar with the matter said on Sunday.
Starboard also reached out to Ian Read, former CEO of Pfizer, and Frank D’Amelio, who served as CFO until 2021, and both expressed interest in helping the activist investor, the sources said.
Reid served as CEO until Albert Bourla assumed the position in 2019. Bourla was instrumental in working with BioNTech (NASDAQ:) to develop a vaccine for COVID-19.
Pfizer declined to comment, and Starboard did not immediately respond to a Reuters request for comment.
Investors have punished the company as it struggles with a sharp decline in sales of its coronavirus vaccines and drugs, a weaker-than-hoped launch of its respiratory syncytial virus (RSV) vaccine, and disappointing clinical data for an obesity pill it was developing.
The company’s stock price fell to $28.58 on Friday from about $41.00 in 2019 when Bourla took over.
While the company was quick to develop a vaccine during the pandemic, its fortunes have faded since the world returned to normal.
Bourla has also invested heavily in acquisitions, spending about $70 billion since 2020. It bought Seagen for $43 billion, Biohaven for $13 billion, Arena for $6 billion, and Global Blood Therapeutics (NASDAQ:) for $5 billion. And Trillium for $2 billion.
Some investors criticized the trend and expressed particular concern about GBT as the main sickle cell disease drug had to be withdrawn from the market and studies were halted due to harmful side effects.
The Wall Street Journal first reported news of the Starboard stake.
The investment firm has previously pushed for changes at News Corp (NASDAQ:), Salesforce (NYSE:) and Match Group (NASDAQ:).