Johnson and Johnson announces share repurchase programme

Johnson & Johnson has announced a planned share repurchase programme, with the company poised to rebuy up to $10 billion (4.97 billion pounds) of its common stock.

This programme has been authorised by the company’s board of directors, with the firm to conduct these repurchases as it sees fit on the open share market, depending on prevailing market conditions.

Shares acquired will be available for common corporate purposes, while the repurchase programme has no time limit and may also be discontinued or suspended without notice at any time.

At present, Johnson & Johnson has 2,896.6 million outstanding shares of common stock.

The company has stated its intention to finance this repurchase programme through a combination of both its available cash and by taking on debt, while it expects to keep its triple-A credit rating throughout the scheme.

William C Weldon, chairman and chief executive officer, said: “This share repurchase program is consistent with our strategy of providing value to our shareholders while maintaining flexibility to continue to invest in future growth opportunities.”

In April 2007, Johnson & Johnson announced its financial results for the first quarter of 2007, reporting strong sales figures driven by the performance of its pharmaceutical business.