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.
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“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.