Good morning, everyone, and welcome to another working week. We hope the weekend respite was invigorating and refreshing. Ours was extended by a couple of days, you may have noticed, so we could observe ancient rituals. Nonetheless, the predictable routine of online calls, meetings, and deadlines has returned, so we are firing up the coffee kettle to brew a needed cup of stimulation. Our choice today is blueberry cobbler. As always, you are invited to join us. Meanwhile, we have assembled another menu of tidbits for you to peruse as you start another journey. So best of luck and, of course, do keep in touch. Your cards and notes are appreciated. …
Former President Trump is backing off his support for a controversial drug pricing plan that struck fear into the hearts of pharmaceutical executives during his first term, STAT reports. In 2020, Trump signed an executive order to make sure that Medicare did not pay more for prescription drugs than other developed countries. The aggressive policy could have slashed more than $10 billion per year from the pharmaceutical industry’s bottom line. Ultimately, the Biden administration rescinded the policy following a court order that stopped the program from going into effect. In June 2023, the Trump campaign released a video and statement indicating that the policy could make a comeback during a second Trump term, and said that, “On Day One, President Trump will sign an Executive Order to end global freeloading on American consumers once and for all.” That is no longer the case, according to a statement by a Trump campaign spokesperson.
Activist investor Starboard Value has taken a roughly $1 billion stake in Pfizer and wants the struggling drugmaker to make changes to turn its performance around, according to The Wall Street Journal. Pfizer had a market value of about $162 billion as of Friday. Its shares have been roughly cut in half from a record high notched in late 2021 after the company delivered the world’s first Covid-19 vaccine. They are little changed so far this year, compared with a 21% rise in the S&P 500. Starboard has approached two former Pfizer executives, Ian Read and Frank D’Amelio, to aid in its efforts, and they have expressed interest in helping. Read was Pfizer’s chief executive officer from 2010 to 2018 and handpicked current chief executive officer Albert Bourla as his successor. D’Amelio was chief financial officer from 2007 to 2021. Bourla has been under pressure from investors, especially after Pfizer overestimated future demand for pandemic-related products once the health emergency subsided.
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