Some of AstraZeneca's biggest investors are urging the board of the UK-listed pharmaceuticals giant to use its $4 billion cash pile to rebuild its weak pipeline of new drugs, according to a report in the Times.
The article quoted three of its biggest shareholders as calling for the lack of new drugs to be addressed. New chief executive David Brennan is holding a series of meetings with major institutions this month to discuss the recent third-quarter results.
Gareth Powell, fund manager at AXA Framlington, which owns a 1 pct stake in AstraZeneca, was quoted as saying: 'They are going to have to go out, be aggressive and buy smaller companies.'
And John Wilson, investment director at Standard Life, which also owns a 1 pct stake, reportedly said: 'It generates wads of cash but the question is what it does with it.
It needs to find deals that are going to make it work.'
Shame that new drugs are in short supply and are at "breath-taking" prices.
Well, that's gouging for you!
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