Teva Pharmaceutical Industries said its board of directors approved a plan to repurchase as much as $3 billion of the Jerusalem-based pharmaceutical developer's shares.
Teva board OKs $3 billion stock repurchase
Shlomo Yanai, president and CEO, said in a news release announcing the move that the repurchase “reflects our confidence in the future outlook of our business and the company's long-term value. Furthermore, our strong cash flow enables us to return cash to our shareholders while preserving the ability to service our debt and continue to drive business growth."
Cash flow will finance the repurchase, which would total 8% of Teva's outstanding common stock based on current market capitalization, the company said. Market conditions, share price, corporate priorities and regulation will affect the repurchase deal, which will likely require three years, but has no time limit, the news release said.
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