AstraZeneca is suspending share repurchases, effective immediately. During 2012 the company has completed net share repurchases of $2.3 billion . The goal ro 2012 was $4.5 billion.
AstraZeneca confirmed its earnings per share target range for the 2012 remains at $6 to $6.30.
That announcement was apparently aimed at reassuring shareholders that an earnings surprise was not on tap. Shares of AstraZeneca were down about 1.7 percent in early Monday afternoon trading.
Pascal Soriot, Chief Executive Officer, AstraZeneca said: “As I assume my new responsibilities at AstraZeneca, I believe this is a prudent step that maintains flexibility while the Board and I complete the company’s ongoing annual strategy update.”
It has been speculated in financial circles that Soriot, who recently took over as CEO, after serving as chief operating officer of Roche, will look look at acquisitions for the London-based company, which has its Americas headquarters in north Wilmington. Reviews can also lead to the sales of businesses and even putting the company on the selling block.
AstraZeneca is facing what is known in investment circles as a “patent cliff.” The situation occurs when blockbuster drugs lose patent protection and revenues plummet.
While cash flow has been strong, the company needs to replace the lower revenue that will come from the drugs that have moved or are moving toward generic competition.
Soriot was named CEO, following the departure of David Brennan, who reportedly left the company under pressure from shareholders unhappy with the company’s performance.