PFE Stock Rises on Reports of Averting Proxy Fight With Activist Investor

Core Viewpoint - Pfizer's shares increased nearly 3% following the news that activist investor Starboard did not nominate any directors to the board ahead of the January 25 deadline, indicating a less confrontational approach for this year [1] Group 1: Starboard's Influence - Starboard may attempt to make changes to Pfizer's board next year if no agreement is reached [2] - Starboard previously accused Pfizer's management of poor capital allocation, R&D failures, and issues with forecasting and budgeting, having built a 1 billion position in the company [3] - At an investor summit, Starboard publicly criticized Pfizer for not generating sustainable revenues from R&D and M&A activities [5] Group 2: Financial Performance and Market Value - Pfizer's shares have declined by 2.3% over the past year, while the industry has seen a growth of 0.2% [4] - Starboard highlighted that Pfizer has invested approximately 70 billion in acquisitions since the pandemic, claiming the company overpaid for these deals [7] - The decisions made by Pfizer have reportedly led to a loss of nearly $20-$60 billion in market value since 2019, despite a $40 billion boost from its COVID-19 franchise [8] Group 3: Capital Allocation Concerns - Starboard emphasized the importance of capital allocation discipline and requested the board to hold management accountable for incorrect capital allocation decisions [9]