Analysts comments and other info concerning the buyback in a updated Bloomberg article:
Since 1991, New York-based Pfizer has completed four
buybacks, repurchasing about 186 million shares, adjusted for
splits. It has spent $4.6 billion on the programs.
''Investors always like to see management repurchase
shares,'' said James Keeney, an analyst with ABN AMRO Inc.
''That's a sign that the company thinks the stock is
undervalued.''
Pfizer shares rose 1 3/4 to 108 1/4 after the announcement.
''It shows that Pfizer has decided that their prospects are
very good and that its a very good use of their funds'' to invest
in the company's own stock, said Keeney, who has a ''buy'' rating
on Pfizer.
Pfizer ''can certainly afford to do this,'' after selling
off several units, he said.
Pfizer earlier this month completed the sales of its
Schneider Worldwide and American Medical Systems units, as part
of its plan to get out of medical-technology businesses.
Pfizer sold Schneider Worldwide to Boston Scientific Corp.
for $2.1 billion, and American Medical Systems to E.M. Warburg,
Pincus & Co. for $130 million.
Last month, Pfizer said it would sell its orthopedic-device
unit, Howmedica, to Stryker Corp. for $1.9 billion.
Pfizer said in February it would shed its medical-technology
units to focus on its more profitable drugs, which include the
blockbuster impotence pill Viagra.
This year, Pfizer had the best-ever drug introduction with
Viagra. It had $411 million in sales in the second-quarter, its
first three months on the market. |
