Valeant board backs share repurchase programme

The board of directors of Valeant Pharmaceuticals have formally approved the launch of a share repurchase programme. This decision will allow the company to re-buy its outstanding common stock up to the value of $200 million (101.6 million pounds) over the next two years.

Valeant announced that its plan aims to increase value for shareholders while reflecting the internal confidence of the firm in the long-term value of its shares.

According to the details of the scheme, the firm may purchase shares on the open market, either in privately-negotiated deals or otherwise, buying amounts that the company sees fit at junctures it believes to be prudent.

Factors affecting the timing and extent of purchases will include price, market conditions, regulations and compliance considerations and the possibility of other investment prospects.

Timothy C Tyson, president and chief executive officer of the firm, said: “The board’s authorisation of the share repurchase programme reflects its confidence in our business and an ongoing commitment to increase shareholder value.”

He added that the revenue-generating ability of its pharmaceuticals business, combined with the firm’s strong balance sheet, will facilitate this programme alongside the pursuit of strategic growth.

In March 2007, Valeant announced the retirement of chief financial officer Bary G Bailey and the appointment of his replacement, current financial controller at the firm Peter J Blott.