Gilead Sciences initiates new share repurchase scheme

Gilead Sciences is to undertake a share repurchase programme which will last the company through to May 2013.

The pharmaceuticals firm’s board of directors has approved an initiative to repurchase $5 billion (3.3 billion pounds) worth of common stock, following the completion of the $1 billion repurchase scheme announced in January 2010.

It stated that this latest initiative is being undertaken against a backdrop of recent success for the company, having recently achieved key clinical milestones in the development of treatments such as TMC278 with Truvada and Quad.

The firm is therefore confident that it is well-positioned for growth in the future.

Dr John Martin, chairman and chief executive officer, said: “Gilead’s board of directors and senior management team believe that the stock repurchase program announced today represents an appropriate and strategic use of the company’s cash.”

Last month, the company published its financial breakdown for the first quarter of 2010, reporting a year-on-year increase in sales of 24 per cent.