Pfizer’s Path to Profit: CEO Bourla Faces Investor Pressure Amid Turnaround Efforts

Pfizer CEO Albert Bourla, pressured by Starboard Value, defends the company's strategy after reporting strong Paxlovid sales leading to profit surpassing expectations. The drugmaker plans cost cuts and restructuring, but faces scrutiny over past drug development and aims to regain investor confidence with improved prospects.

Pfizer CEO Albert Bourla, speaking during a conference call, assured Wall Street that the company is on the brink of a successful turnaround. His comments followed Pfizer's report of better-than-expected profits, notably from strong sales of its COVID-19 treatment Paxlovid. Despite these gains, Pfizer's shares dropped by 2.4% to $28.18, with investors anxious for more significant improvements in the company's strategic outlook.

Bourla addressed recent criticisms from activist hedge fund Starboard Value, highlighting Pfizer's ongoing cost-cutting measures and corporate restructuring plans. These include a new appointment for the chief strategic officer role and soon, a new head of research and development. Starboard has called for greater accountability on Pfizer's board, criticizing the company's track record in profitable drug production.

While Pfizer increased its annual profit and sales forecasts, the company still grapples with a substantial drop in vaccine and treatment sales from their peak during the pandemic. Portfolio manager Dave Wagner stressed the need for further cost management and streamlined operations. With optimistic projections for key products like Paxlovid and Comirnaty, Pfizer's revised strategy aims to achieve $4 billion in savings annually.

(With inputs from agencies.)