Pfizer Inc (NYSE:PFE) shares are trading higher Monday. Some of the optimism may be surrounding activist Starboard Value’s decision to not pursue a proxy battle with the company.
What To Know: CNBC’s David Faber reported Monday on “Squawk On The Street” that Starboard has decided against engaging in a proxy fight for the time being.
The deadline for potential board nominations was set for Jan. 25, but it came and went without any nominations from Starboard, according to CNBC.
“That’s it. No proxy fight for Pfizer,” Faber said.
Starboard announced that it built a $1 billion stake in the pharmaceutical giant in October. The activist investor was reportedly planning to push for changes at the company given the stock’s recent underperformance.
Despite Monday’s gains, Pfizer shares are still down nearly 4% over the past year, and remain down more than 50% since hitting an all-time high around $61 in December 2021. Pfizer’s stock is also still trading below where it was when current CEO Albert Bourla took over.
Pfizer has been under pressure from investors to turn things around ever since the drugmaker overestimated the future demand for its COVID-19-related offerings. Since the pandemic, Pfizer has battled declining COVID-19 sales, which has led to downbeat guidance and weighed on shares. Pfizer has also struggled to keep up with competitors in the GLP-1 space as the company’s first attempt at a weight-loss pill largely underwhelmed.
Over the weekend, Pfizer announced positive results from the Phase 3 BREAKWATER trial evaluating BRAFTOVI (encorafenib) in combination with cetuximab and mFOLFOX6 in patients with metastatic colorectal cancer. The results showed an objective response rate of 61% with Pfizer’s BRAFTOVI combination regimen compared to 40% with investigator’s choice of chemotherapy,
Pfizer is due to report fourth-quarter financial results before the market opens on Feb. 4. Analysts are looking for earnings of 45 cents per share and revenue of $17.2 billion, according to estimates from Benzinga Pro.
PFE Price Action: Pfizer shares were up 2.35% at $26.72 at the time of publication Monday, according to Benzinga Pro.
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