Pfizer's Strategic Pivot: Navigating Challenges Amid Investor Pressure

Pfizer CEO Albert Bourla addresses Wall Street, defending the drugmaker's turnaround strategy amidst pressure from activist hedge fund Starboard Value. Despite higher-than-expected profits from COVID-19 drug sales, Pfizer faces challenges, including cost-cutting and strategic acquisitions, to boost its future growth and shareholder returns.

Pfizer CEO Albert Bourla made a compelling case to Wall Street, assuring that the pharmaceutical giant's strategic turnaround is on track following robust profits driven by successful COVID-19 treatment sales. However, the company's shares fell 1.3% to $28.48 as investor skepticism lingers.

During a conference call, Bourla addressed criticism from activist hedge fund Starboard Value, revealing efforts to streamline costs and revamp Pfizer's corporate structure. This includes appointing new leadership and planning strategic acquisitions, such as the $43 billion Seagen buyout, to enhance its cancer drug pipeline.

Despite these efforts, challenges remain, including falling COVID-19 vaccine and Paxlovid sales, fueled by a spike in infections. Pfizer's commitment to $4 billion savings this year and revised revenue forecasts reflect a strategic pivot to assure improved profitability and growth.

(With inputs from agencies.)