Penumbra (NYSE:PEN) announced today that its board of directors approved a share repurchase authorization of up to $200 million.

Alameda, California-based Penumbra said in a news release that its board approved the repurchase on Aug. 5. It allows the company to repurchase its common stock from time to time at such prices as it deems appropriate. These purchases can take place through open-market buys, block transactions, privately negotiated transactions, including accelerated share repurchase transactions, or otherwise.

The repurchase authorization expires on July 31, 2025.

Under the authorization, Penumbra entered into an accelerated share repurchase agreement with JPMorgan Chase Bank. This agreement seals the repurchase of $100 million in common stock. The company plans to make an initial payment of $100 million to JPMorgan Chase, receiving an initial delivery of 474,000 shares of common stock. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of Penumbra’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms of the ASR.

Penumbra plans to complete the final settlement of the agreement in the third quarter of 2024. It intends to fund the share repurchase with cash on hand.

The company develops a range of devices for treating stroke, including neuro access catheters and computer-assisted thrombectomy systems.