Pharmaceutical giant Pfizer (PFE) has appointed company insider Chris Boshoff its new chief of research and development (R&D) as it scrambles to produce new medications.
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The appointment of Boshoff as head of R&D also comes as Pfizer fends off activist investor Starboard Value, which has accused the company of running poor research and development operations, and of having a thin pipeline of new prescription drug candidates.
Pfizer has struggled over the past few years as sales of its Covid-19 vaccine rapidly decline. The company said Boshoff will takeover as head of R&D on January 1, 2025 and oversee all aspects of new drug development at Pfizer.
Focusing on Cancer Drugs
Boshoff previously led Pfizer’s cancer, or oncology, drug division. Analysts said his appointment likely signals that the drug maker plans to focus on new cancer treatments within its R&D unit. Boshoff has worked at Pfizer for 11 years and succeeds Mikael Dolsten, the executive who oversaw the development of Pfizer’s successful Covid-19 vaccine.
However, Pfizer’s recent track record of developing new medications has been disappointing and includes poor results for an obesity drug, the weak launch of a new respiratory vaccine, and the cancellation of a sickle cell disease treatment after deaths occurred during clinical trials.
Pfizer’s stock has declined 9% this year.
Is PFE Stock a Buy?
The stock of Pfizer has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on seven Buy, 12 Hold, and one Sell recommendations issued in the last three months. The average PFE price target of $31.80 implies 28.30% upside from current levels.
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