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Blog Coverage Pfizer Signs Agreement with Citibank to Repurchase $5 Billion Worth of Shares

Upcoming AWS Coverage on Immune Pharmaceuticals

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. blog coverage looks at the headline from Pfizer, Inc. (NYSE: PFE) as the Company announced through a filing with the Securities Exchange Commission on February 03, 2017, that it has entered into an accelerated share repurchase agreement with Citibank N.A. to buyback Pfizer's common stock. The agreement with Citibank was signed on February 02, 2017. The transaction is valued at $5 billion. Register with us now for your free membership and blog access at:


One of Pfizer's competitors within the Drug Manufacturers - Major space, Immune Pharmaceuticals Inc. (NASDAQ: IMNP), is estimated to report earnings on March 29, 2017. AWS will be initiating a research report on Immune Pharma following the release of its next earnings results.

Today, AWS is promoting its blog coverage on PFE; touching on IMNP. Get all of our free blog coverage and more by clicking on the links below:



Details of the Share buyback agreement

According to the agreement signed with Citibank, approximately 126 million of Pfizer's shares will be repurchased. The repurchased shares are to be delivered to Pfizer by February 06, 2017. The share buyback is a part of the Company's existing share repurchase authorization program.

The transaction is expected to be settled on or before 3Q 2017. As part of the settlement of the transaction, under certain conditions, Citibank may have to deliver additional common stock shares to Pfizer. Alternatively, Pfizer may also have to deliver additional common stock shares to Citibank or opt to make cash payment, if required. Either of these decisions will be based on the volume-weighted average price of Pfizer's shares during the transaction period.


Pfizer's corporate policy has been to maintain a strong balance sheet and robust liquidity so that it can take advantage of market opportunities and increase shareholder value through share repurchase and payment of dividends.

Pfizer had acquired approximately 136 million shares of Pfizer's common stock as a part of an accelerated share repurchase agreement with Goldman, Sachs & Co. in March 2016. The transaction was valued at $5 billion and was completed in June 2016 after Goldman Sachs provided an additional 18 million shares as part of the settlement. As on October 02, 2016 Pfizer had approximately $11.4 billion available with it from the share-purchase authorization.

In order to increase shareholder value and improve business performance Pfizer had undertaken numerous steps including organization restructuring, improving product portfolio via strategic acquisitions, share repurchase, increase dividend pay-outs, and increase funding for its R&D initiatives.

In Q2 FY16, Pfizer had undertaken the reorganization of its entire business. As a part of the reorganization, the Innovative Pharmaceutical and Consumer Healthcare operations were merged into one business segment - Pfizer Innovative Health and the Established Products business was renamed as Pfizer Essential Health. Both verticals were to be managed separately as two different businesses. Innovative Health would focus on new and speciality drugs and Essential Health would focus on the generics and biosimilars business.

Pfizer's acquisitions in 2015-2016 included Hospira Inc. in September 2015 for $16.1 billion; Anacor Pharmaceuticals, Inc. in June 2016 for approximately $5.2 billion; Bamboo Therapeutics Inc. in August 2016 for $150 million; and Medivation Inc. in September 2016 for $14.3 billion.

On January 31, 2017, Pfizer had announced its full year financial performance report for 2016. The Company reported full year revenue of $52.8 billion for 2016 reflecting an operational growth of 11%. Its diluted earnings per share (EPS) for 2016 were $1.17 whereas its adjusted diluted EPS was $2.40.

Pfizer has also declared a dividend of $0.32 for Q1 FY17 on December 13, 2016, which would be payable on March 01, 2017. This would be the 313th consecutive quarterly dividend paid by Pfizer.

Future Plans

Pfizer had shared its financial guidance for FY17 and expects its revenues to be in the range of $52 billion-$54 billion and its adjusted diluted EPS to be in the range of $2.50-$2.60. The FY17 diluted EPS includes the cost of share buyback of $5 billion.

Stock Performance

On Friday, February 03, 2017, Pfizer's share price finished the trading session at $32.09, climbing 1.13%. A total volume of 35.90 million shares exchanged hands, which was higher than the 3 months' average volume of 28.00 million shares. The stock has advanced 6.89% and 14.86% in the last three months and past twelve months, respectively. The stock is trading at a PE ratio of 32.03 and has a dividend yield of 3.99%. The market capital of the Company was $194.73 billion as of its last closing price.

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SOURCE: Active Wall Street