Pfizer has appointed Chris Boshoff, the head of its oncology division, as the new Chief Scientific Officer and head of the research and development department. The decision is being closely watched as the pharmaceutical company is under pressure from Starboard Value, an activist investor with a billion-dollar stake in Pfizer.
Boshoff, who was instrumental in Pfizer's controversial $43 billion acquisition of biotech company Seagen, will take on the role beginning in early 2025. The South African doctor and researcher succeeds Mikael Dolsten, a longtime confidant of CEO Albert Bourla.
The appointment comes at a critical time for Bourla, who is being criticized by investors for Pfizer's Covid-19 profits evaporating in costly acquisitions as well as for the disappointing stock performance during his tenure. Pfizer has lost 58 percent of its market capitalization since its pandemic peak and currently stands at 142 billion US dollars. This year alone, the stock price fell by 15.6 percent, while the S&P 500 rose by 24.8 percent.
Starboard Value, which announced a one billion dollar stake in Pfizer in October, has particularly targeted the Seagen deal. According to Starboard, the acquisition contributed to a loss of value of at least 20 billion US dollars. In a presentation at a conference last month, it stated that management must be held accountable for its capital allocation.
Bourla praised Boshoff in a statement as the "ideal leader" to transform Pfizer's R&D division and pursue a clearer strategy that advances the development of more blockbuster drugs. Under Boshoff's leadership, the oncology division has become one of the most productive divisions at Pfizer.
According to insiders, Boshoff was crucial in endorsing the Seagen acquisition. While this acquisition strategically aims to strengthen Pfizer's oncology business, it is seen by critics as an example of failed capital investments.
Roger Dansey, who joined Pfizer with the Seagen acquisition, takes over as interim head of the oncology division. Johanna Bendell, previously head of oncology research and development at Roche, will take on Dansey's role as Chief Development Officer in the oncology division.
Pfizer's stock price barely reacted to the announcement and rose by less than 1 percent in pre-market trading.
