Friday, February 12, 2016

AstraZeneca - I Expect A Dividend Cut

Summary

AstraZeneca is nearing another patent cliff.
Late Stage Pipeline will take longer to deliver and investors could lose patience.
Over the last 3 years, AZN has been burning cash.
With future cash flows under pressure and a leveraged balance sheet, AZN may need to cut on dividend payout.
The next three years will be very painful for AstraZeneca (NYSE:AZN) as it will face multiple patent expiries. The new expiries will add to the pain of ongoing generic erosion of recently expired blockbusters (Nexium and Pulmicort). The company will lose patent protection across geographies on most of its cash -cows, and AstraZeneca is certainly not in a very strong position to deal with these pressures.. Read More