Pfizer to buy back $10 b in stock in line with its repurchase strategy

NEW YORK: Pfizer, the world’s biggest drugmaker, said it will buy back $10 billion in stock after announcing earlier this week it will retire about $11.4 billion in shares through the spinoff of its animal-health unit.

The buyback is the fourth major share repurchase programme for New York-based Pfizer in the past 2 1/2 years. During that time, the company has announced $39 billion in share buybacks, including Friday’s. Pfizer has $3.9 billion left on its current repurchase programme, the company said on Friday.

Ian Read, Pfizer’s chief executive officer, has said that share repurchases are the best uses of Pfizer’s cash, compared with acquisitions or increasing the dividend. Read has shed non-drug units to focus on developing and selling new, brand-name therapies.

The company, which had a market capitalisation of about $200 billion as of Friday’s close, is looking at whether it will split itself and get rid of its generics drug business.

Pfizer earlier this week announced the completion of a deal to exchange shares of its own stock for equity in Zoetis, its former animal-health unit. That exchange is expected to retire about $11.4 billion in Pfizer shares.

Pfizer shares gained 1.4% to $28.58 in extended trading at 5:35 pm New York time after the buyback was announced. The company’s stock has increased 25% in the past 12 months.