By Elias Schisgall

Shares of United Therapeutics rose after the company said its board authorized a $2 billion stock buyback authorization and said it entered into accelerated share repurchase agreements with Citibank for $1.5 billion.

Shares were up 7.1% to $512.01 in Monday morning trading. Shares have risen 61% in the past year.

The pharmaceutical company on Monday said the total authorization extends over the next year. The $500 million not covered by the ASRs with Citibank will remain available for additional buybacks at the company's discretion over the year, the company said.

"With the underlying strength of our business and our conviction in the catalysts in front of us, we believe there is a clear disconnect between United Therapeutics' fundamentals and valuation," Chief Executive Martine Rothblatt said. "As such, we view this stock repurchase authorization as a highly compelling and value-enhancing use of capital."

The ASRs with Citibank include a $750 million collared agreement and a $750 uncollared agreement.

The company will make an upfront $1.5 billion payment to Citi on or around Wednesday, in exchange for delivery of about 70% of shares to be repurchased under the uncollared ASR and about 50% of the collared ASR, priced at the company's Monday closing price.

United Therapeutics will receive another share delivery under the collared ASR after an agreed-upon hedging period, the company said.

The uncollared ASR has a termination date in the second quarter, and the collared ASR has a termination date in the third quarter.

The company may be entitled to additional shares or may be obligated to make a cash payment or deliver shares to Citi at the final settlement of the two agreements, United Therapeutics said.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

March 09, 2026 10:41 ET (14:41 GMT)

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