04:44 PM EDT, 10/10/2024 (MT Newswires) -- Pfizer ( PFE ) investor Starboard Value on Thursday called on the company's board to conduct an investigation after two former executives of the drugmaker distanced themselves from any campaign that Starboard may initiate.

In a letter sent to Pfizer's ( PFE ) board, Starboard said it is a "significant" shareholder of the company. The firm is slated to meet Pfizer ( PFE ) Chief Executive Albert Bourla, lead independent director Shantanu Narayen and possibly other board members next week to "discuss the best path forward" for the company, Starboard Managing Member Jeffrey Smith said in the letter.

Pfizer's ( PFE ) former CEO, Ian Read, and former chief financial officer, Frank D'Amelio, "expressed concerns about the trajectory of the business" in recent meetings with Starboard, Smith wrote. Read and D'Amelio, who are "significant" individual shareholders of Pfizer ( PFE ), offered to help as they themselves wanted Pfizer ( PFE ) to pursue a better path forward, according to Smith.

However, late Wednesday, Read and D'Amelio said they have decided "not to be involved" in Starboard's efforts. "We are fully supportive of (Bourla), senior management and the board, and we are confident that over time they will deliver shareholder value," Read and D'Amelio said in a statement issued by Guggenheim Securities on their behalf.

"We understand that people within Pfizer ( PFE ) and/or their representatives have contacted Mr. Read and Mr. D'Amelio and purportedly threatened to commence costly litigation against them, claw back prior compensation, and cancel unvested performance stock units, unless they publicly release a statement supporting (Bourla)," Smith wrote.

Pfizer ( PFE ) declined MT Newswires' request for comment. The company's shares closed 2.8% lower on Thursday.

Starboard urged Pfizer's ( PFE ) board to immediately set up a special committee of its "members with clean hands to investigate the extent of this behavior" and hold the responsible parties accountable. "To be clear, we believe this behavior is highly inappropriate, flagrantly unethical, and a significant breach of fiduciary obligations," Smith said.

Starboard expects to have "a constructive engagement" with Pfizer ( PFE ) on Wednesday, Smith wrote.

Price: 29.38, Change: +0.04, Percent Change: +0.14