Teva to make massive share buy-back; expects $22 billion sales for 2011

Israel-based generic drugs giant Teva Pharmaceutical Industries (Nasdaq: TEVA) has announced it plans to repurchase a massive $3 billion of its shares (including through one or more subsidiaries) which, at the company’s current market capitalization, amounts to around 8% of the outstanding common stock.

"This share repurchase program reflects our confidence in the future outlook of our business and the company's long-term value," said Shlomo Yanai, president and chief executive, adding: "Furthermore, our strong cash flow enables us to return cash to our shareholders while preserving the ability to service our debt and continue to drive business growth."

Given the company's strong cash generation and cash position, the repurchase program will be financed out of free cash flow, without the need to increase leverage, said Teva. In the 12 months ended September 2011, Teva has returned more than $2.5 billion to shareholders through dividends, share repurchases and redemptions of convertible bonds.