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Drug distributor AmeriSourceBergen authorizes $2.4 billion share buyback

A researcher works at the Cytos laboratory in Schlieren near Zurich, May 24, 2005. REUTERS/Sebastian Derungs STD/CR/AA

(Reuters) - Medicines distributor AmerisourceBergen Corp (ABC.N) said it authorized a special $2.4 billion share repurchase programme to mitigate a possible dilution from the exercise of warrants issued to Walgreens Boots Alliance Inc (WBA.O) in 2013.

AmeriSourceBergen, which has already bought back $650 million of shares in 2014 and $1 billion of shares since April this year, said the new buyback programme will not have an impact on its profit forecast for fiscal year 2015 and 2016.

The company said it will fund the repurchase programme with proceeds from the warrant exercises, and by cash on hand.

The company had issued the warrants to Walgreens Boots Alliance as part of a 10-year pharmaceutical distribution deal.

(Reporting by Vidya L Nathan in Bengaluru; Editing by Don Sebastian)