Pfizer CEO on company's 'exceptional quarter' and Starboard fight

After Pfizer (PFE) posted a third-quarter profit increase and raised its full-year guidance, CEO Albert Bourla joins Market Domination to talk about the “exceptional quarter.”

Bourla notes that in addition to profit and revenue, Pfizer's COVID and non-COVID businesses also exceeded expectations. He tells Yahoo Finance, “When you have a quarter like this, you really feel like you're in a good position to deliver on what you promised.”

Although there have been questions about the sustainability of Pfizer's COVID business, Bourla explains: “It is clear to me that the COVID business has stabilized at the new level, which will be the sustainable level going forward. We already have a second year of repetition.”

As Pfizer continues its proxy battle with activist investor Starboard Value, Bourla says he agrees with some of the points raised, such as poor shareholder returns. However, he disagrees with “many” other points, such as spending and acquisitions, and calls the Pfizer-BioNTech (BNTX) deal “transformational.”

He points out that Jeff Smith, CEO of Starboard Value, has said that a lot of changes need to be made at the company. However, he believes he has already addressed the main issues:

“I changed everything 12 months ago. Let me repeat what we have done as changes. We changed our business model with new leadership and separation from US internationals. We have achieved three quarters in a row of growth… We announced a $4 billion cut in SI&A (sales, information and administration) and OpEx (operating expenses).

Bourla also points to leadership changes and new board members as initiatives to create new shareholder value. He argues that these efforts have worked and resulted in the company performing “very well.”

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This article was written by Melanie Riehl