Teva Pharmaceuticals’ (NASDAQ:TEVA) has authorized a buyback of up to 8% of its outstanding stock, or $3 billion worth of shares, over the next three years.
While the company isn’t required to complete the entire buyback, it returned more than $2.5 billion to shareholders through dividends, repurchases and redemptions of convertible bonds this year alone.
“This share repurchase program reflects our confidence in the future outlook of our business and the company's long-term value," said Teva CEO Shlomo Yanai.
The Israeli company will pay for the deal using cash, without having to increase leverage.
Teva also revealed non-GAAP earnings guidance for the year ending Dec. 31, 2012 on Wednesday, including sales of $22 billion and earnings in the range of $5.48 to $5.68 a share.
Analysts polled by Thomson Reuters are expecting on average earnings of $5.67 a share on slightly lower sales of $21.97 billion.
Revenue would consist of $11 billion in U.S. sales and $6.6 billion from Europe, Teva said, while generic products are forecast to contribute $11.8 billion to the total.
The drug maker’s best selling drug, Copaxone, which is used to reduce symptoms in patients with multiple sclerosis, is predicted to bring in $3.8 billion in 2012.