Intuitive Increases Share Repurchase Plan

Sunnyvale, Calif,-based Intuitive Surgical Inc., which was recently issued a warning letter from the U.S. Food and Drug Administration and is facing lawsuits regarding its flagship product, has upped its share repurchase plan. The company’s board of directors authorized Intuitive to repurchase an additional $779 million of its outstanding common stock. With this authorization, the total amount available for share repurchases by the company is approximately $1.5 billion, which includes approximately $721 million remaining from previous authorizations.

Intuitive has also entered into an accelerated share repurchase (ASR) program with Goldman Sachs & Co., where it will repurchase $500 million of its common stock from Goldman. A majority of the shares purchased under the ASR Program will be received and retired within 2 weeks. The remaining shares, if any, under the program will be received and retired by Oct. 29 2013, although they could be received earlier if the ASR Program is ended sooner.

“Our program to repurchase $1.5 billion in Intuitive Surgical stock, including $500 million on an accelerated basis, demonstrates our commitment to our shareholders as well as our confidence in the Da Vinci surgical system and the benefits it brings to patients,” said Gary S. Guthart, Ph.D., president and CEO of Intuitive Surgical.

As of June 30, the Company had approximately $3.0 billion of cash, cash equivalents and investments.

Intuitive Surgical makes robotic surgical systems, and it Da Vinci surgical system is approved to perform various minimally invasive procedures.