Welcome to Extreme Investor Network, where we provide valuable insights and unique information on all things money. Today, we’re breaking down the latest news from Pfizer CEO Albert Bourla’s interview with CNBC’s Jim Cramer, where he addressed criticism from activist investor Starboard Value.
In the interview, Bourla acknowledged some of the criticisms from Starboard, particularly regarding the company’s poor total shareholder return. He admitted that Pfizer experienced a significant drop last year but emphasized that they are making changes to improve performance. Despite the challenges, Bourla expressed openness to discussing and considering any good ideas from Starboard or any other investors.
One key highlight from Pfizer’s recent earnings report is the strength seen in sales of its Covid vaccine and antiviral pill, Paxlovid. The company also reported success in other ventures, leading to an overall beat in the quarter. However, Starboard, with a reported $1 billion stake in Pfizer, has put pressure on the pharmaceutical giant, accusing management of missing out on opportunities to maximize gains from Covid products.
In response, Bourla highlighted the positive changes Pfizer has implemented, including cost-cutting measures, new board members, and the appointment of a new head of research. He commended Starboard’s CEO Jeff Smith, noting his intelligence and pragmatism during their recent meeting. Additionally, Bourla refuted claims of Pfizer dissuading past executives from supporting Starboard’s efforts, stating that no one authorized or represented by the company engaged in such actions.
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