Genzyme Corporation [GENZ]
I guess Genz is turning into large pharma, when innovation dies, buy back stock.
Update from Analyst Day on May 6th; share buyback and planned
divestiture of low CFROI 'non-core' assets to boost EPS in >2010;
raising PT to $63 from $60.
To improve EPS, GENZ plans $2B share buyback (~14% of outstanding
shares; $1B in 2010) & to divest low ROI assets by YE. While
divestitures reduce top-line revenues, we estimate EPS accretion of
~5-6% in 2011-2015. This move is in line with proposal from R.
Whitworth, newly appointed board member/activist.
