In our current valuations, we have been aggressively leveraging our cash to buy back shares and plan to continue this in the second half of 2010. This is evidenced by the 44 million shares or about $1.7 billion worth of stock we bought and retired during the second quarter.
At our current price if we were to fully execute upon the 5 billion stock repurchase plan, we would have repurchased approximately 18% of our current market cap.
Geoff, as you know, we’ve done accelerated share repurchases. We also have access to the capital market, and clearly capital structure is one thing we continue to look at. As John mentioned, we can’t give specifics, but we’ll have updates for you pretty quickly here in the second half of the year.
So Mark, this is Robin. As we’ve highlighted on slide five, I think our focus in terms of returning shareholder value to investors right now is going to be the share repurchase plan. It doesn’t mean that we would never consider a dividend, but our current thinking is to use the vehicle of share repurchases. What I meant was again it’s very clear as John highlighted that there are current valuations. There is an opportunity with the 5 billion share repurchase program to continue to be aggressive, and potentially even accelerate our repurchase of stock. So we can’t provide details at this point, but we do expect to be up with the update to you in the near future.
Them Fighting Words
Gilead's management gave strong signals on the conference call last night that they will be aggressively repurchasing shares in the coming months. Here are some tidbits from the transcript provided by Seeking Alpha: