Eli Lilly and Co (NYSE:LLY), the world's largest drug company and the inventor of Mounjaro, the 'King Kong' of weight loss treatments, Monday after hours weighed in with a monster share buyback.
Alongside its dividend announcement, investors were told the group would be hiking its stock repurchase programme to a hefty $15 billion, up from a prior $5 billion.
The message is clear: Lilly is unable to spend its cash on a transaction that will efficiently soak up the dollars it seems to be printing on an hourly basis. As such, it is handing back the funds.
In the pantheon of big investor payouts, the drugs group is still decidedly minor league. Tech giants Apple and Microsoft have led the way, with the former announcing a $110 billion repurchase programme and Microsoft approving a $60 billion buyback. Oil super-major Chevron has also adopted this strategy, launching a $75 billion programme.