AbbVie Authorizes $1.5 Billion Stock-Buyback Plan
02/15/2013| 09:44am US/Eastern
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By Ben Fox Rubin
AbbVie Inc. (>> AbbVie Inc) disclosed a $1.5 billion stock-buyback program as the company seeks to boost shareholder value.
AbbVie is the pharmaceutical business spun off from health-care products company Abbott Laboratories (>> Abbott Laboratories) at the beginning of this year.
The repurchase plan, which is effective immediately, is expected to be completed over several years. The plan has no time limit and can be discontinued at any time.
AbbVie's current market value is about $57.8 billion, according to FactSet.
As with other drug makers, AbbVie hopes its pipeline of potential new medicines will offset a string of patent expirations that will wipe out more than $1 billion in cholesterol-drug sales next year alone. The company also faces pricing pressure from health plans and government programs.
Shares were up 0.4% premarket at $36.70. The stock is up 7.1% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com.
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