* Buyback plan follows completion of prior $3 billion plan
* Sets $0.49 first quarter dividend
Dec 17 Eli Lilly and Co on Monday said
its board of directors had authorized a new $1.5 billion
share-repurchase plan that the U.S. drugmaker expects to
complete in 2013.
The company said the initiative follows a $3 billion
stock-buyback program that was started in 2000 but was not
completed until this year.
Lilly in June said it expected to complete by the end of
2012 the remaining $420 million in share repurchases from the
earlier $3 billion program. The company said it would then
resume "systematic" share repurchases, the first of which was
announced late on Monday in a press release.
The company, whose sales and earnings are expected to plunge
through 2014 due to generic competition for its biggest
medicines, on Monday also declared a dividend of $0.49 per share
for the first quarter of 2013.
The annual yield from its dividend is more than 4 percent,
one of the highest in the drug industry, and has kept many
investors aboard during the company's ongoing patent cliff.
Shares of Lilly were up 0.4 percent to $48.55 in after-hours
trading, from their closing price of $48.34 Monday on the New
York Stock Exchange.