Pfizer to repurchase $5 billion in stock as part of $11 billion authorization

Markets Associated Press

Pfizer will buy back $5 billion of its stock under an agreement with Goldman Sachs.

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The drugmaker said Monday the accelerated stock buyback is part of its $11 billion share repurchase plan authorized in October. It said it will receive the approximately 150 million shares involved in the buyback from Goldman Sachs on Wednesday.

Companies typically repurchase stock to reduce the total number of shares outstanding and boost earnings per share.

Pfizer Inc., based in New York, spent about $5 billion buying back stock in 2014. The repurchases helped reduce its shares outstanding about 6.8 percent year over year.

Shares of the company fell 10 cents to close at $33.07.