Starboard’s stake comes amid a time of struggle at the drugmaker, which has begun to cut costs aggressively as demand for its Covid-19 medicines recedes.

Pfizer Inc.’s stock gained Monday after a report that activist investor Starboard Value has invested $1 billion in the drug company. Bondholders seem to like the news too.

The drugmaker has shed nearly $180 billion in market cap after struggling to chart a new course as the COVID-19 pandemic waned.

Starboard has approached two former Pfizer executives, Ian Read and Frank D’Amelio, to assist in its efforts, and they have expressed interest in helping, The Wall Street Journal reported Sunday, citing people familiar with the matter.

Activist investor Starboard Value has taken a stake of about $1 billion in Pfizer Inc. and is seeking to spur a turnaround of the struggling pharmaceuticals giant, according to a person familiar with the matter.

Activist investor Starboard Value has built a $1bn position in Pfizer, according to two people familiar with the matter, as the drugmaker behind the top-selling Covid-19 jab struggles to reverse a fall in its share price to below pre-pandemic levels.