… isn't this yet again another example of how publicly traded companies give into market pressure and manage the share price instead of the business?
I don’t think this has to do with managing the share price per se. AZN doesn’t need as many jobs in sales and marketing because several of their big-selling drugs lost patent protection or are about to lose it. The balance sheet is strong enough to handle more leverage, which is what they’re accomplishing by backing back shares.
p.s. Leveraging the balance sheet to increase the return on equity was the main impetus for all of the mega-mergers in the pharma industry such as PFE-WYE and MRK-SGP.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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