Global Blood Therapeutics, Inc.

Pfizer’s next deals are likely to be longer-term efforts to reload its R&D work rather than big-ticket, late-stage assets, the company’s top executives said Tuesday. “Looking forward, we are looking at more strategic opportunities right now, which will enhance the pipeline in areas that we would like to play, rather than near-term revenues,” CEO Albert Bourla told investors Tuesday. The company has about $10 billion to $15 billion it could put toward M&A this year, according to CFO Dave Denton. He previously guided that while there’s always “a little flexibility to do BD,” large transactions would likely be kicked to 2026 or beyond. Pfizer has made de-levering a priority, with billions in cost cuts initiated and executed, and billions more raised by selling off stakes in Haleon, a consumer health wing co-run with GSK. Like many other drugmakers, New York-based Pfizer is looking at the explosion of assets coming out of China. The number of deals being made there “has not escaped our attention,” chief strategy and innovation officer Andrew Baum said Tuesday. “They’re mostly fast followers, but I expect that will change as well,” Baum said. “It’s an area that we are very, very active in.” That shift to earlier-stage assets comes after a run of larger acquisitions that were meant to reload revenue as the company’s Covid franchise declined. Led by the $43 billion acquisition of Seagen, those deals have added $20 billion in 2030 revenues, Bourla said. Not all of those transactions have been successful, however. Last year, Pfizer pulled a sickle cell drug from the market that was part of its $5.4 billion acquisition of Global Blood Therapeutics in 2022. And on Tuesday, it said it was taking several write-downs related to drugs acquired from Seagen. That included a $1 billion write-down after discontinuing felmetatug vedotin, an antibody-drug conjugate. A Pfizer spokesperson said the decision came after data showed that it “is unlikely to achieve a meaningful improvement over standard-of-care chemotherapy in patients with advanced solid tumors, including triple-negative breast cancer.” A second $200 million write-off came from a second Seagen ADC, disitamab vedotin. The spokesperson said that development of the asset is continuing. A third, $400 million charge was related to Seagen’s Tukysa. Both felmetatug vedotin and disitamab vedotin were listed as potential future growth drivers at Pfizer’s oncology innovation day a year ago. Last year also brought activist investor Starboard Value , which sought more accountability for management after what the firm alleged was a badly underperforming slate of deals that held back the stock. Pfizer has largely been able to stave off Starboard’s most aggressive potential actions, such as pushing for a seat on the board.

iStock, JHVEPhoto Starboard last year took a $1 billion stake in Pfizer, looking to turn the pharma around after alleged severe shortcomings by its current leadership. But Bloomberg reports it has missed the deadline for nominating a director to the pharma’s board. Activist investor Starboard Value held off on nominating a director to Pfizer ’s board, missing its Jan. 25 deadline, according to reporting from Bloomberg on Monday, which cited anonymous sources familiar with the matter. The pharma is expected to convene its shareholders in April, when they will vote on nominated directors for the company. BioSpace has reached out for Pfizer for comment and will update this space as needed. Despite missing its deadline for this year’s annual shareholder meeting, Starboard will still be able to continue its challenge to Pfizer through nominations for 2026 if it is unable to reach an arrangement with the pharma, Bloomberg noted. Monday’s news is the latest development in the ongoing tussle between Pfizer and Starboard. In October 2024, the activist investor carved out a $1 billion stake in the pharma, noting at the time that it had lost faith in the company’s current leadership, especially CEO Albert Bourla, who the firm said has forgone the company’s usual disciplined spending patterns. Initially, Starboard had gotten former Pfizer executives—ex-CEO Ian Read and ex-CFO Frank D’Amelio—onboard, though both walked back their involvement, announcing just days later that they were no longer involved in Starboard’s campaign. In a presentation in October 2024, Starboard outlined its problems with Pfizer, stating that while the company was able to generate big value for its shareholders during the COVID-19 pandemic, it has largely failed to capitalize on this market leverage. In particular, Pfizer has failed to realize the multi-blockbuster potential of its pipeline, Starboard claimed, pointing to what it characterized as several missed opportunities such as cancer therapy Bavencio—which Pfizer ultimately divested to former partner Merck KGaA—and the JAK1 asset Cibinqo, which the firm projects to fall “well short” of its blockbuster target by 2030. Starboard also claimed that Pfizer seems to have “significantly overpaid” for several of its big-ticket acquisitions, which since 2022 have reached nearly $70 billion. These deals include the $43 billion buyout of Seagen and $5.4 billion for Global Blood Therapeutics . Citing Wall Street Research estimates, Starboard argued that the pharma will miss its 2030 M&A sales target by $7 billion. The GBT acquisition was particularly problematic for Starboard, which flagged Pfizer’s later decision to pull the sickle cell disease therapy Oxbryta—the centerpiece of the GBT agreement—after new evidence pointed to an excess risk of death and complications. Despite these stumbles, analysts have largely taken Pfizer’s side, with BMO Capital Markets writing in October 2024 that Starboard’s takeover “could do little to change the story near term” and suggesting in a different note that solving the pharma’s predicament will take more than a “quick fix.” “Management appears to actually be undertaking many of the corrective actions to right the ship,” the BMO analysts continued. “Change takes time, and replacing the CEO (while satisfying to some) is unlikely to fix the story and immediately re-rate shares.”

SAN FRANCISCO, Oct. 31, 2024 /PRNewswire/ -- Pfizer, Inc. and Global Blood Therapeutics, Inc. were sued in San Francisco Superior Court where the plaintiff alleges the drug Oxbryta contributed to the onset of a vaso-occlusive crisis (VOC) as well as significant pain and swelling throughout the body. According to the suit filed by Kiley Grombacher of Bradley Grombacher, both Pfizer and Global Blood Therapeutics should have known that for decades that Oxbryta could cause VOCs and in some cases fatalities. The suit also alleges the defendants failed to properly warn the public about these risks. "My client suffered serious physical harm for a drug intended to help him with his medical issues," said attorney Kiley Grombacher. "Now, he has serious health problems that has impacted his entire life, and has made his current health issues far worse." Pfizer acquired Global Blood Therapeutics in 2022 in a deal valued at $5.4 billion. Global Blood Therapeutics had developed Oxbryta that was used to treat haemolytic anaemia (excess breakdown of red blood cells) in patients aged 12 years and older who have sickle cell disease. However, just weeks ago Pfizer pulled the drug in a voluntary market withdrawal over its potential impacts on those taking it, including vaso-occlusive crisis. VOC occurs when sickled red blood cells block blood flow to the point that tissues become deprived of oxygen. This in turn sets in motion an inflammatory response as the body tries to rectify the problem. In this case, the plaintiff began taking Oxbryta in 2020 after seeing several ads for the drug. However, according to the complaint Oxbryta only made his condition worse, and he suffered a higher rate of VOCs than prior to starting the medication. He also had more blood transfusions, in addition to other debilitating symptoms caused by the medication including pain and swelling. While on the drug, the plaintiff suffered a stroke in 2024 which impacted his vision and prevented him from driving or doing other everyday activities. It wasn't until after his stroke that he stopped taking the medication, but by that point it was too late. According to the complaint, in the short time since he stopped the medication, he suffered multiple VOCs and has been hospitalized at Advocate Christ Medical Center in Oak Lawn, IL where he still remains as a result of the complications from stopping the medication. The case is Trebor Hardiman v. Global Blood Therapeutics, Pfizer, San Francisco Superior Court, Case No. CGC-24-619197. About Bradley/Grombacher LLP When you find yourself in need of taking legal action against another party in a dispute, turn to the attorneys at Bradley/Grombacher for help. Our lawyers have more than 50 years of combined experience that can be put to work to help you get the fair and just compensation you deserve in a dispute involving employment law, consumer law, and personal injury law. Contact: Bradley/Grombacher 866-881-0403 SOURCE Bradley/Grombacher WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In GET STARTED