Teva Pharmaceutical Industries Ltd. (TEVA) will buy back as much as $1 billion in shares and American depositary receipts over the next 12 months.
Teva will use its own cash to fund the share repurchase program and may buy back the stock either in the open market or in private transactions, the Petah Tikva, Israel-based company said today in a statement.
The program, which has been approved by the board, isn’t expected to affect the company’s goal to reach $31 billion in revenue and $6.8 billion in net income by 2015, Teva said. The generic drugmaker is also sticking to its plan to make additional acquisitions.
“It’s a good sign and it shows that management thinks the stock is cheap,” David Levinson, an analyst at Bank Hapoalim, said in a telephone interview. “They’re also still on track with their plans for 2015.”
Teva shares fell 1.2 percent to 185.50 shekels in Tel Aviv. The stock has lost about 13 percent this year, compared with a 2.8 percent rise in the Bloomberg Europe Pharmaceutical Index.
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