By Denny Jacob and Mark R. Long


Two former Pfizer top executives won't participate in an activist investor's effort to pressure the drugmaker to make changes to improve its performance.

Former Chief Executive Ian Read and ex-Chief Financial Officer Frank D'Amelio said they decided not to be involved in Starboard Value's campaign, and expressed support for current Chairman and CEO Albert Bourla in a joint statement issued by Guggenheim Securities late Wednesday.

Pfizer on Thursday declined to comment.

Starboard on Thursday confirmed it approached Read and D'Amelio and that the pair offered to be of assistance. It also said it's scheduled to meet Bourla and other members of the board on Wednesday.

The Wall Street Journal reported this week that Starboard had taken a roughly $1 billion stake in the New York company, and wanted the struggling drugmaker to turn its performance around.

Starboard had approached the two executives to help its efforts, and they expressed interest, people familiar with the matter told the Journal.

Read was Pfizer's CEO from 2010 to 2018 and chose Bourla as his successor, while D'Amelio served as CFO from 2007 to 2021.

In the statement Wednesday, the two said they were fully supportive of Bourla, senior management and the board, "and we are confident that over time they will deliver shareholder value."

Pfizer's market value has tumbled over the past two years, with the share price down by about half from its all-time high reached in December 2021. After cementing its household-name status with the world's first Covid-19 vaccine, pressure has mounted, particularly after the company overestimated future demand for pandemic-related products once the public-health crisis subsided.

Pfizer is now betting much of its future on cancer drugs. The company believes this area can deliver billions of dollars in new sales and alleviate pressure stemming from falling Covid-19 revenue and lower-priced competition that is nearing for some of its big-selling products.

Evan David Seigerman, an analyst at BMO Capital Markets, earlier this week said Starboard's stake could help right the ship at Pfizer, but noted a quick fix was unlikely as solving the company's many challenges will take time.

Pfizer shares were down 1% at $29.89 in early trading Thursday.


Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

10-10-24 1001ET