Eli Lilly and Company has revealed a new $15 billion share repurchase program, approved by its board of directors. This comes after the completion of its previous $5 billion repurchase scheme in the fourth quarter of 2024. Alongside the buyback plan, Lilly also announced a 15% increase in its quarterly dividend, marking the seventh consecutive year of dividend growth. The newly declared dividend for the first quarter of 2025 will be $1.50 per share, payable on March 10, 2025, to shareholders on record by February 14, 2025.
Lilly’s executive vice president and CFO, Lucas Montarce, explained that despite the company’s rapid growth, its capital allocation strategy remains focused on key areas. “As Lilly has entered into a period of rapid growth, our capital allocation priorities remain the same. We will continue to focus on supporting new launches, expanding our manufacturing capacity, and advancing our pipeline through research and development and business development,” he said. However, Montarce noted that due to the company’s strong growth, Lilly is also increasing the amount of capital it plans to return to shareholders, with the repurchase program expected to be executed over the next three years.
The company’s share repurchase initiative allows for purchases to be made at management’s discretion, using various methods such as open market transactions, accelerated repurchases, or privately negotiated deals. The program does not have a set deadline and may be suspended or discontinued at any time, depending on market conditions and the company’s needs.
Lilly is a global leader in the pharmaceutical industry, dedicated to advancing scientific breakthroughs and improving lives around the world. With nearly 150 years of pioneering research, the company’s medicines help tens of millions of people globally. Through its work in biotechnology, chemistry, and genetic medicine, Lilly is addressing some of the world’s most pressing health challenges. This includes redefining diabetes care, tackling obesity and its long-term effects, advancing treatments for Alzheimer’s disease, and developing solutions for debilitating immune system disorders and difficult-to-treat cancers.
As Lilly continues to innovate, the company remains committed to ensuring its medicines are both accessible and affordable, with a focus on conducting clinical trials that reflect the diverse global population. With each new step, Lilly’s mission is clear: to make life better for millions of people around the world.
