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Lilly sets $3B buyback
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March 23, 2000: 10:17 a.m. ET
Drug maker's stock repurchase follows completion of $1.5B buyback program
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NEW YORK (CNNfn) - Eli Lilly and Co. announced a $3 billion stock buyback Thursday, the biggest in its history.
The Indianapolis-based maker of the antidepressant Prozac and Zyprexa, a schizophrenia treatment, said current market conditions "offer an excellent opportunity" to buy back shares. The shares will be retired or may be held for use under the company's equity compensation plan or for other general corporate purposes.
Large-cap pharmaceutical stocks have lagged in recent months, amid a surge in the biotech sector and concerns over interest rate increases and the effect of Medicare reform proposals on the drug industry. Lilly stock is down about 35 percent from its 52-week high of 97-3/4.
Lilly (LLY: Research, Estimates) shares added 1 to 64-9/16 in early trading Thursday.
The buyback follows completion of a $1.5 billion repurchase program announced in January 1999.
As of February 29, 2000, Lilly had 1.09 billion shares outstanding. 
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Eli Lilly
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