In a Tuesday interview with CNBC’s Jim Cramer, Pfizer CEO Albert Bourla struck a positive tone about activist investor Starboard Value, saying he agreed with some of its criticisms, but maintained that the company is headed in a good direction.
“I agree that the total shareholder return right now is very poor. Why is that? Because we had a significant drop last year,” he said. “I think we are doing a lot of changes. But if Starboard, and anybody else for that matter, have good ideas, I will certainly discuss them and entertain.”
Pfizer reported an earnings beat Tuesday morning and raised its full-year outlook, seeing strength in sales of its Covid vaccine and antiviral pill, Paxlovid. Bourla said the drugmaker also saw success in other ventures, saying the quarter “beat across the board.”
The pharmaceutical giant is under pressure from Starboard, which reportedly has a $1 billion stake in the company. The activist investor accused management of losing a significant amount of value by failing to take advantage of immense gains from Covid products. Bourla contended that Pfizer has made positive changes, saying the company has cut costs, added new board members and is in the middle of appointing a new head of research. But he praised Starboard’s CEO Jeff Smith, saying he seemed “very smart” and “very pragmatic” at a recent meeting.
Bourla also rebuked claims that his company was involved in dissuading past executives — former CEO Ian Read and former CFO Frank D’Amelio — from joining Starboard’s efforts.
“No one from the board, no one from [the] management team, and no one that is authorized or represented by Pfizer did that,” he said.