The new buyback takes over as the previous repurchasing program ends at the end of this year. The new program will close at the end of 2015, according to a company statement.
The news didn’t do much for Thoratec’s stock when it was announced on Dec. 9, with shares sliding just 0.3% on the day to close at $38.43.
"This authorization reflects our strong financial position and commitment to a disciplined capital allocation strategy, along with continued confidence in our long-term growth opportunities," president & CEO Gary Burbach said in prepared remarks. "Funding our internal growth initiatives and pursuing attractive business development opportunities remain our top priorities, although this authorization provides the flexibility to also allocate capital to share repurchases in a measured and opportunistic fashion over time."
The Pleasanton, Calif.-based device maker generated $86 million in cash flow in the 1st 9 months of this year, with over $280 million in cash and equivalents as of September 30, 2013, according to a company statement.