Merck Sharp and Dohme launches share repurchasing scheme

Merck Sharp and Dohme's board of directors has authorised the additional purchasing of up to $15 billion (9.65 billion pounds) of the company's common stock for its treasury.

The firm expects to repurchase approximately $7.5 billion of common stock over the next 12 months, to be financed through a combination of debt issuance and operating cash flows, with the remainder to be repurchased over an indefinite period of time.

It will aid the company's efforts to deliver a strong balance sheet and consolidate its financial position, allowing it to invest in research and development and other growth-oriented opportunities.

Kenneth Frazier, chairman and chief executive officer at Merck Sharp and Dohme, said: "This action also reflects the board's confidence in our long-term growth strategy and the company's future performance."

This week, the company also published its financial results for the first quarter of 2013, during which it achieved a worldwide sales total of $10.7 billion.