GlaxoSmithKline has initiated a £2bn share buyback programme starting today (24 Feb) with an initial tranche of up to £0.7bn.
This starting amount will be used on treasury shares, none of which have been repurchased since 2014. The full programme is intended to complete within the next 18 months.
A stockmarket announcement from the company this morning said: “The purpose of the programme is to return excess capital to shareholders and reduce the share capital of the company, and it is expected that the implementation of the programme will enhance earnings per share.”
The programme was announced in Glaxo’s final results earlier this month, which revealed the company had increased core operating profit by 11% to £9.1bn throughout 2024.
It forecasts that core earnings will increase a further 6% to 8% over the following year if the buyback programme goes ahead as planned.
However, Glaxo’s earnings per share were down 40% to 63.2p each last year, with its total operating profit also slumping 33% to £4bn.
The company also announced the completion of its acquisition of Boston-based biopharmaceutical company IDRx this morning for $1.15bn.