Maker of heart rhythm devices, St. Jude Medical, Inc.(NYSE:STJ) on Thursday said that it planned to make a share buyback worth up to $1 billion.
The share buyback program comes amidst a regulatory tangle that the company has got into with one of its key products undergoing a review.
The company said in a statement that the purchase of shares will be from the open market and also through private negotiated transactions. St. Jude had 308 million shares outstanding as of Nov. 28.
Last week U.S. government inspectors had come down heavily on the company, criticising the way it manufactured and tested the Durata wire that connects a life- saving defibrillator to the heart.
Some doctors even raised safety concerns over the Durata.
According to Bloomberg, St. Jude said that it was actively monitoring Durata patients and there are no signs of increased risk of failure with the device.
"This share repurchase program demonstrates the confidence our board and management team have in the long-term prospects for St. Jude Medical," Chief Executive Officer Daniel Starks said in the statement. "We remain committed to delivering superior results and value to our shareholders."
St. Jude rose 2.4 percent to $33.69 at the close in New York in Thursday’s session and rose another 1% today. The shares have lost 23 percent since their three-month peak of $43.69 on Oct. 5.