### Pfizer Strategizes to Secure Future Amid Patent Expirations and Investor Pressure

Pfizer Inc. is navigating a critical period as some of its flagship products, including the vaccine Prevnar 13 and cancer drug Ibrance, approach patent expiration within the next few years. This impending patent cliff, set for 2026 and 2028 respectively, has generated concern among investors about the pharmaceutical giant's future revenue streams.

Central to Pfizer's strategy to mitigate these challenges is the recent $43 billion acquisition of Seagen, a move aimed at bolstering their oncology portfolio. CEO Albert Bourla has been vocal about the undervaluation of Pfizer, asserting that the company's recent acquisitions, along with its promising internal pipeline candidates, are key to sustaining long-term growth.

The entry of activist investor Starboard Value into the conversation has heightened interest, with the firm criticizing Pfizer's management for underperforming in delivering shareholder value. However, Bourla remains confident in the company’s strategic direction. During a recent earnings call, he emphasized his willingness to collaborate with all shareholders, including Starboard, to enhance value.

Bourla addressed the timing of Starboard’s critiques, suggesting they were belated given the strides Pfizer has already made. He pointed to over a dozen new product launches within the past year as a testament to the company's proactive efforts. At a meeting described as "cordial" and "constructive," Starboard reportedly did not present any novel proposals, reinforcing Bourla's belief in the current strategic path.

While Pfizer continues to push forward with drug approvals and pipeline advancements, the reception from investors has been lukewarm. Noteworthy among their latest developments is the expansion of FDA approval for their RSV vaccine to all adults, a significant step beyond its original scope for older adults. However, their weight-loss drug candidate danuglipron faced hurdles in early trials, raising questions about Pfizer's competitive edge in this burgeoning market.

Despite these challenges, Pfizer is diligently progressing with danuglipron, which has now entered Phase 2 trials. Bourla remains optimistic, projecting that Pfizer will be among the first to market an oral weight-loss product. This could be pivotal in tapping into a fast-evolving market.

In a broader strategic context, between 2021 and 2023, Pfizer has undertaken mergers and acquisitions worth $86 billion and implemented over $4 billion in cost savings through cuts. These moves, according to Bourla, have already outperformed forecasts. Additionally, the company has fortified its internal capabilities by hiring former Citi analyst Andrew Baum to focus on pipeline growth, alongside executing several executive changes.

Addressing the challenge of identifying new blockbuster drugs, Bourla emphasizes targeted research on products meeting critical medical needs, which he believes will be paramount in driving substantial revenue and enhancing shareholder value.