Allergan's Next Purchase? $10 Billion of Its Own Stock

The transcript discusses a company's earnings call, focusing on its acquisition strategy, financial position, and comparison with Valiant. The company plans a $10 billion stock buyback, indicating a shift from large acquisitions. It aims to strengthen its balance sheet and maintain flexibility for future M&A. The discussion highlights differences in business strategies and capital allocation within the pharma industry.

What major strategic change did the company announce after the failed merger with Pfizer?

• They will expand into new markets.

• They will buy back $10 billion of their own stock.

• They will invest in new technology.

• They plan to acquire a new company.

How does the company plan to improve its financial flexibility?

• By reducing its R&D spending.

• By increasing its debt.

• By buying back its own stock.

• By acquiring smaller companies.

What is the company's debt to EBITDA ratio expected to be after their financial adjustments?

• Less than two times

• More than three times

• Exactly two times

• Less than one time

How does the company's R&D spending compare to Valiant's strategy?

• They spend more on R&D.

• They spend less on R&D.

• They do not invest in R&D.

• They have the same R&D spending.

What trend is observed among big pharma companies in their earnings calls?

• Focusing on in-house pharmacy businesses.

• Distancing themselves from Valiant's strategy.

• Emphasizing high-risk acquisitions.

• Reducing their R&D investments.