The Compound and Friends The Battle for Pfizer Begins
Oct 21, 2024
Robert Armstrong, a US financial commentator for the Financial Times and author of the Unhedged newsletter, joins the discussion on Pfizer's recent turbulence. They dive into the impact of activist hedge fund Starboard Value's billion-dollar investment and what it means for the pharmaceutical giant. The conversation explores Pfizer's pandemic triumph, current financial challenges, and strategic shifts in leadership amidst declining vaccine demand. Armstrong sheds light on the chaotic dynamics of Wall Street and the potential risks ahead for Pfizer.
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Wall Street's Preference
- Wall Street prefers perpetual cash flows over short-term gains.
- Pfizer's COVID-19 vaccine success was short-lived, impacting its long-term appeal.
Eli Lilly's Turnaround
- Eli Lilly, now a pharma leader, once struggled like Pfizer.
- Fifteen years ago, Lilly faced growth challenges and low valuations.
Uncertainty at Pfizer
- Pfizer's situation has uncertainties, especially regarding Starboard Value's involvement.
- A dividend cut could lead to management changes, potentially impacting investors.