AstraZeneca CEO Steps Down

AstraZeneca’s chief executive officer David Brennan will step down on June 1st after serving in the position for six years. Chief financial officer Simon Lowth will replace Mr. Brennan on an interim basis while a permanent successor is found. Also, Leif Johansson will succeed Louis Schweitzer as non-executive chairman on June 1st, and will head the search for Mr. Brennan’s replacement.  

The news follows first quarter revenue decline of 11% and a 43% drop in earnings. The company has had several drug development setbacks with experimental depression and ovarian cancer drugs, as well as loss of exclusivity on several key brands, Seroquel IR, Nexium and Arimidex, escalating concerns about long-term strategy and prospects.

In recent years, Mr. Brennan has cut costs through workforce reductions and returned billions in share buybacks and dividends in an effort to appease shareholders. Also under his leadership, the company acquired MedImmune for $15.6 billion, which was criticized for the limited pipeline rewards it yielded. Recently, AstraZeneca has entered into several agreements including the purchase of Ardea Biosciences for $1.3 billion and a collaboration with Amgen.