NEW YORK--(BUSINESS WIRE)-- Pfizer Inc. (NYSE: PFE) today announced that its board of directors authorized a new share repurchase program of up to $5 billion of its common stock. This is in addition to approximately $4 billion of authorization remaining under its current repurchase program and increases the company’s total repurchase authorization to $9 billion. Pfizer currently expects to repurchase approximately $5 billion of its common stock during 2011 with the remaining authorized amount available in 2012 and beyond.
“This new repurchase program demonstrates our confidence in the business and our commitment to building shareholder value,” said Ian Read, Pfizer president and chief executive officer. “We believe that the share repurchases are a prudent use of our capital and expect to maintain the financial flexibility to continue dividend increases and pursue business development. While the dividend level remains a decision of the board and will continue to be evaluated in the context of future business performance, barring significant unforeseen events, we continue to target a dividend payout ratio comparable to the current industry average of approximately 40 percent in about three years.”
As of December 31, 2010, Pfizer had repurchased approximately 60 million shares under the current repurchase program.
DISCLOSURE NOTICE: The information contained in this release is as of February 1, 2011. Pfizer assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.
This release contains forward-looking information about the Company’s plans with respect to share repurchases and dividend payments that involves substantial risks and uncertainties. Such risks and uncertainties include, among other things, the uncertainties inherent in business and financial planning including, without limitation, the risk of unforeseen business, financial or other events that could significantly impact the Company’s ability to implement share repurchases and dividend payments as currently planned.
A further description of risks and uncertainties can be found in Pfizer’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and in its reports on Form 10-Q and Form 8-K.
Joan Campion, 212-733-2798
Suzanne Harnett, 212-733-8009
KEYWORDS: United States North America New York
INDUSTRY KEYWORDS: Health Pharmaceutical