Ian Reid, Chairman and CEO of Pfizer, speaks as President Donald Trump, left, listens during an announcement of a new pharmaceutical glass packaging initiative in the Roosevelt Room of the White House in Washington, D.C., July 20, 2017.
Andrew Harrier | Bloomberg | Getty Images
former Pfizer CEO Ian Reid and former CFO Frank D'Amelio said on Wednesday evening that they would withdraw from the Starboard Value stake in the struggling pharmaceutical giant, just days after news of the activist's stake emerged.
Reid and D'Amelio said they “fully support” Pfizer CEO Albert Bourla in a joint statement made through an investment bank that they confirmed was accurate. The duo had been in contact with a number of managers shortly before news of the Starboard stake broke Sunday evening, according to people familiar with the matter.
“We are confident they will deliver shareholder value over time,” the two former executives said of Pfizer's current board and management. The company's shares have remained essentially flat for the year and are down nearly 50% from their 2021 highs.
The statement was made through Guggenheim Securities, which has long advised Pfizer on dealmaking. A bank representative declined to comment after the release.
The face-lift comes as Pfizer's board grapples with activist efforts, and just days before Starboard's Jeff Smith is scheduled to meet with CEO Bourla, people familiar with the matter said. Executives joining an activist campaign and then walking away from it is highly unusual.
It was also not immediately clear what impact, if any, the breakup would have on Starboard's campaign. A representative of the Activists Fund did not immediately respond to a request for comment. Starboard, one of the largest and most established activist funds, has raised nearly $1 billion in the pharmaceutical company, CNBC previously reported.
Jeff Smith, Managing Director at Starboard, has previously campaigned on autodesk and Sales force In recent months. While it typically focuses on the technology sector, it has also built stakes in it Starbucks And the father of the Wall Street Journal News Corp this year.
Representatives for Pfizer did not respond to requests for comment.
