Pfizer Inc. (NYSE:PFE) And Citibank To Work Together On $5 Billion Share Repurchase Program

Pfizer Inc. (NYSE:PFE) and Citibank have agreed to work together in the acceleration of share repurchase, which will involve buying back of Pfizer’s common stock. According to active Wall St. blog coverage the collaboration, which is at the value of $5 billion has already been filed with the Securities Exchange Commission after being signed on February 02, 2017.

Let’s explore the conditions and the environment surrounding the duo’s move

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First, the agreement states that an approximation of close to 126 million of Pfizer’s shares will be repurchased. It is likely that both Citibank and Pfizer may have to deliver additional common stock shares to each other and better still Pfizer may opt to make cash payment. As a part of a hastened share repurchase agreement, Pfizer had earlier acquired approximately 136 million shares of Pfizer’s common stock with Goldman, Sachs & Co.

Apparently, the drug maker has been undertaking numerous steps in an effort to enlarge the shareholding value and improve business performance. Some of the significant steps include improvement of product portfolio, organizational restructuring, increased dividend payouts, and strategic acquisitions among others. Reorganization involved merging its Innovative Pharmaceutical and Consumer Healthcare operations into one business unit. On the other hand, a very notable acquisition was that of Hospira, Inc.(NYSE:HSP) in September 2015 at a cost of $16.1 billion, Bamboo Therapeutics Inc. in August 2016 for $150 million and Anacor Pharmaceuticals Inc (NASDAQ:ANAC) in June 2016 for roughly $5.2 billion.

Into the future plans of Pfizer

The Company has so far obtained an operational growth of 11%, which resulted from the full year revenue of $52.8 billion for 2016. For the313th consecutive quarterly, Pfizer will also be paying out a dividend of $0.32 for Q1 FY17 on December 13, 2016. The dividend is payable on March 01, 2017.

Having shared its financial guidance for FY17 the company is also in expectation of obtaining revenues within the range of $52 billion-$54 billion. It’s all clear that the Pfizer has been putting its acts together. Meanwhile, Pfizer’s stock was trading at $32.23 witnessing an increase of $0.14 or 0.44%.

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