{ "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": 34, "pageCount": 74, "prevPage": 33, "nextPage": 35, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses external analyst quotes to build a case against management's current strategy.", "elementsJson": [ "headline_text", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-7792191b0575/34", "deckHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-7792191b0575#slide-34", "components": [ { "bbox": { "h": 0.035, "w": 0.964, "x": 0.03, "y": 0.178 }, "kind": "callout", "text": "The Company discontinued its Phase 2b Danuglipron (twice a day formulation) after tolerability issues.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "027e47b3-234f-476b-8231-8ff6efadcd84", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.964, "x": 0.03, "y": 0.53 }, "kind": "callout", "text": "The Company is continuing to invest behind a once a day formulation, but analysts are skeptical.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5376d49a-6963-4fed-83d8-6be5fbd50324", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "The Company appears to have missed the mark on GLP-1s.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b66-7100-8969-dad60e120ec7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.964, "x": 0.03, "y": 0.58 }, "kind": "quote", "text": "This morning, PFE announced that it is advancing the development of its QD formulation... we remain skeptical on the asset with questions remaining on the tolerability profile... continue to see a limited role for the asset.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bc490985-ddba-4cde-8f90-9bc7547e03c0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.964, "x": 0.03, "y": 0.23 }, "kind": "quote", "text": "We expect PFE to trade lower today following disclosure of topline results from the phase 2b obesity study... we view the results as markedly negative for the program, with PFE discontinuing further development of the twice daily formulation.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f8aa56b4-4be9-41d3-a2ab-8aca221c2b6a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"We expect PFE to trade lower today following disclosure of topline results from the phase 2b obesity study of the company’s twice daily oral GLP-1 receptor agonist, danuglipron. Despite the study meeting its primary endpoint of body weight change from baseline vs placebo, we view the results as markedly negative for the program, with PFE discontinuing further development of the twice daily formulation.\" — Goldman Sachs, December 1, 2023; \"This morning, PFE announced that it is advancing the development of its QD formulation of danuglipron (oral GLP-1) based on recent PK data, and we wanted to provide our thoughts. Overall, while we are not surprised that PFE is moving forward with this program, we remain skeptical on the asset with questions remaining on the tolerability profile... Net-net, we are not surprised by today’s news but continue to see a limited role for the asset absent more clarity on the tolerability profile of the new formulation and based on LLY’s significant time-to-mkt advantage for orforglipron (ph3 data expected in mid-2025).\" — J.P. Morgan, July 11, 2024", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b66-7100-8969-dd4e79b9243c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.03, "y": 0.97 }, "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": "5379ee68-2c26-4d01-9e08-7e479147a0a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.964, "x": 0.03, "y": 0.89 }, "kind": "title", "text": "The Company appears to have missed the mark on GLP-1s.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d72eec8a-a7d2-41af-bca0-70b9ab4459bb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.85, "x": 0.03, "y": 0.03 }, "kind": "title", "text": "However, the Company’s GLP-1 Assets Have Not Been Successful To Date...", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43018ae7-6f6b-4c21-b685-9d6989260968", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "8a0341d4-fab6-4245-87b7-09e29245a44b", "evidence": "Uses Goldman Sachs and J.P. Morgan analyst quotes to validate the argument.", "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 }