Pfizer Results May Temper Efforts for Shakeup Demanded by Activist Investor

Shares of Pfizer (PFE) fell on Tuesday as a strong earnings report was seen as likely to limit activist investor Starboard Value from driving major changes at the pharmaceutical company.

Pfizer reported third-quarter adjusted earnings per share (EPS) of $1.06, with revenue rising 31% year over year to $17.70 billion. Both were well above analyst estimates compiled by Visible Alpha.

The company got a boost from growing demand for its COVID-19 treatment Baxlovid, which saw sales rise to $2.70 billion after bringing in just $202 million a year ago.

Pfizer raised its full-year adjusted EPS forecast to $2.75 to $2.95, and revenue to $61.0 billion to $64.0 billion. Previously, it had expected adjusted EPS of $2.45 to $2.65 and revenue of $59.5 billion to $62.5 billion.

Starboard was pressed for change

Chief Executive Officer (CEO) Dr. Albert Bourla and the board of directors have come under fire from Starboard, which has taken what was said to be a $1 billion stake in the company and called for changes. At a recent investor conference, Starboard CEO Jeffrey Smith reportedly explained where the drug company went wrong, but did not provide details about what the hedge fund felt should be done.

In the quarterly report, Bourla said he was confident “that we will meet our financial obligations in 2024 and that we are well positioned to continue to advance scientific discoveries that are beneficial to our patients and our company, as well as to create long-term shareholder value.” In the coming years.”

Pfizer shares, which had been essentially flat for the year through Monday’s close, fell 1.4% to $28.45 in recent trading.