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