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AstraZeneca’s (LSE:AZN) Chief Executive David Brennan declared his retirement on the same day the pharmaceutical giant released its first quarter results for 2012, showing a 11% decline in revenue.
AstraZeneca was down £943 million in revenue, reaching only £7.349 billion due to the “loss of exclusivity on several brands, together with the challenging market conditions” that “made for a difficult start to the year”, according to Mr. Brennan.
“After more than six years as Chief Executive Officer of this great company I have decided that now is the right time to step down and allow a new leader to take the reins,” Mr. Brennan said in a statement.
Pre-tax profits of AstraZeneca was down 38% from £3.2 billion to £2 billion, disclosing at the same the company spent more than £700 million in restructuring costs during the quarter.
Replacements and New Appointments
Mr. Brennan will be replaced by Simon Lowth as Interim Chief Executive. Mr. Lowth is currently an Executive Director and Chief Financial Officer of AstraZeneca.
In lieu of Mr. Lowth’s new role, he will be succeeded by Julie Brown, the current Vice President Group Finance as interim CFO.
AstraZeneca’s Non-Executive Chairman, Louis Schweitzer, will also leave his post three months earlier than scheduled and will be replaced by Leif Johansson.
Leief Johansson’s appointment, however, will be subject to the approval by shareholders at the Annual General Meeting to be held today.
Mr. Johannson’s position is essential as he will have become the Chairman of the Nominations Committee and lead the selection process to find a successor for Mr. Brennan.
Mr. Brennan emphasised: “The Board’s decision to appoint Simon Lowth as interim Chief Executive Officer has my full support and I am confident that AstraZeneca will continue to have a positive impact on the lives of patients around the world and by doing so will deliver real value to our shareholders.”
All appointments and resignations will take effect on June 1st, 2012.
Comments
Chairman Louis Schweitzer uttered a few words in relation to Mr. Brennan’s retirement:
“David has led AstraZeneca’s business with skill, integrity and courage during a period of enormous change for the pharmaceutical industry and for the company. We fully understand and respect David’s decision to retire and thank him for his selfless leadership of the company.”
Company Spotlight
Shares of AstraZeneca were down 5.9% equivalent, or 167 pence, to £26.73 at 2:00 PM GMT, following the news.
