{ "docId": "019dd923-622b-71dc-a6da-7792191b0575", "docSlug": "ca94acfa263b", "documentTitle": "Pfizer Inc. (PFE)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2024-10-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 13, "pageCount": 74, "prevPage": 12, "nextPage": 14, "slideType": "cite_precedent", "function": "cite_precedent", "density": "overcrowded", "nDataPoints": 3, "notes": "The slide uses bold and underlined text within the quotes to emphasize key points.", "elementsJson": [ "headline_text", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-7792191b0575/13", "deckHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575#slide-13", "components": [ { "bbox": null, "kind": "callout", "text": "Wall Street analysts believed the Company was well-positioned.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b66-7100-8968-8792e0efaf27", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.9, "x": 0.05, "y": 0.25 }, "kind": "quote", "text": "PFE best positioned for top-line growth... pipeline capable of replenishing 41% of the FY17 revenue base by FY25 (vs. peers 7%)... revenue CAGR rising to 7.7% (FY20-25) from 2.7% (FY17-20).", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37636db3-e9d1-49a9-af00-569083850cf8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.65 }, "kind": "quote", "text": "Pfizer has had pipeline success in 2018... We believe these events have played a key role in changing the narrative on Pfizer from an M&A/Split story to a pipeline/growth story.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4a3899b4-a926-4c26-b445-c6c11d171dcf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "quote", "text": "Perhaps the greatest legacy of outgoing CEO Ian Read is a reinvigorated R&D pipeline that should sustain top-line growth beyond key patent expirations.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ae68dc93-7bcb-4e39-be5e-d59ad71e0bb8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"PFE best positioned for top-line growth among large cap pharma with the pipeline capable of replenishing 41% of the FY17 revenue base by FY25 (vs. peers 7%), well in excess of the 16% of sales exposed to generic/biosimilar headwinds (vs. peers 42%). While near-term growth will be depressed by the loss of Lyrica, we believe investors will look through this to a period of renewed growth. Post-Lyrica LOE, we model revenue CAGR rising to 7.7% (FY20-25) from 2.7% (FY17-20).\" — Atlantic Equities, November 27, 2018; \"Perhaps the greatest legacy of outgoing CEO Ian Read is a reinvigorated R&D pipeline that should sustain top-line growth beyond key patent expirations. We expect new CEO Bourla to leverage this significant boost in late-stage R&D assets to a level that could preclude the need for M&A or financial engineering\" — Oppenheimer, December 11, 2018; \"Pfizer has had pipeline success in 2018 with surprisingly good data from Tafamidis, Tanezumab meeting efficacy endpoints in smaller duration phase-3 trials but with questions on safety remaining, early encouraging data from next-gen JAK's for Inflammation and advancement of 20-valent pneumococcal vaccine into phase-3. We believe these events have a played a key role in changing the narrative on Pfizer from an M&A/Split story to a pipeline/growth story.\" — UBS, January 22, 2019", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b66-7100-8968-883795b3f044", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Wall Street Research. Quotes are bolded and underlined for emphasis.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "901c148b-ee29-4149-9d6b-58a949b7b52d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.88 }, "kind": "title", "text": "Wall Street analysts believed the Company was well-positioned.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "54257e47-be53-4c39-9ae7-894bf391db38", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "In 2019, Wall Street Analysts Were Optimistic About Pfizer’s Pipeline and Future Prospects", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "32a814d5-cca8-413c-8598-8bd01848eb0b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "639ac637-6b86-4cc9-9324-4c3a7e5d378d", "evidence": "Uses quotes from reputable financial analysts to support a thesis.", "confidence": 0.9 } ], "arcBeats": [ { "to": 60, "from": 11, "beatId": "06f958bd-fafa-4ea3-a570-c80d16e2354b", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate (Make it worse)", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document highlights several issues with Pfizer's strategy, including its poor capital allocation and forecasting and budgeting issues, which have made its performance worse.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 73, "from": 10, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "54ce6058-bed8-43c5-8780-84fb43f33c5e", "evidence": "The document highlights the significant losses in value that Pfizer has experienced due to its poor performance, and urges the board to take action to improve this.", "position": 0, "objective": "What are the consequences of not improving Pfizer's performance?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" }, { "to": 73, "from": 3, "name": "Quick Win Big Bet", "slug": "47-quick-win-big-bet", "bestFor": "Transformation planning, 100-day plans, resource allocation", "matchId": "f6f940a6-6451-4a43-940f-82e2afbdbeb8", "evidence": "The document presents several potential solutions to improve Pfizer's performance, including improving its return on R&D investments and holding management accountable for improving performance.", "position": 1, "objective": "Can Pfizer achieve higher returns on capital?", "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap", "confidence": 0.6, "description": "Separate initiatives into immediate wins and longer-term strategic bets" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }