United Therapeutics stock jumps on $1 billion share repurchase plan

Published 01/08/2025, 12:36
© Reuters.

Investing.com -- United Therapeutics Corporation (NASDAQ:UTHR) stock rose 4% Friday morning after the company announced a $1 billion accelerated share repurchase program.

The public benefit corporation will enter into two Accelerated Share Repurchase (ASR) agreements with Citibank, N.A. to buy back its common stock under the $1 billion repurchase program authorized by the company’s board of directors on July 30, 2025.

The agreements include a $500 million collared and a $500 million uncollared agreement, with United Therapeutics making an upfront payment of $1 billion to Citibank on August 4, 2025. The company will initially receive approximately 75% of shares under the uncollared agreement and about 50% under the collared agreement.

"These expeditious agreements reflect our confidence in the intrinsic value of our stock, our upcoming catalysts, and our ability to generate sustained revenue and cash flow growth," said Martine Rothblatt, Chairperson and CEO of United Therapeutics.

Final settlement of the uncollared ASR is expected in the fourth quarter of 2025, while the collared ASR should settle in the first quarter of 2026. The final number of shares repurchased will be based on the average daily volume-weighted average price during the term of the agreements.

United Therapeutics had approximately 45.2 million shares outstanding as of July 30, 2025.

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