United Therapeutics Corporation (NASDAQ: UTHR) announced its board of directors authorized a $2 billion stock repurchase program over the next year. The company entered into accelerated share repurchase agreements with Citibank for $1.5 billion, with the remaining $500 million available for additional repurchases at the company's discretion.

The ASR program consists of two components: a $750 million uncollared agreement and a $750 million collared agreement. United Therapeutics will make an upfront payment of $1.5 billion to Citibank on or around March 11, 2026.

Under the uncollared ASR, the company will receive an initial delivery of shares representing approximately 70% of total anticipated repurchases based on the March 9, 2026 closing stock price. The final share count will be determined by the average daily volume-weighted average price during the agreement term, scheduled to end in the second quarter of 2026.

The collared ASR will deliver approximately 50% of anticipated shares initially, with additional shares delivered after a hedging period. This agreement includes minimum and maximum share repurchase amounts and is scheduled to terminate in the third quarter of 2026.

"We are entering 2026 with considerable momentum and a high degree of confidence in the durability of our growth and cash‑flow trajectory," said Martine Rothblatt, chairperson and CEO. "We believe there is a clear disconnect between United Therapeutics' fundamentals and valuation."

At final settlement, United Therapeutics may receive additional shares or be required to make cash payments to Citibank depending on stock performance. The company stated it assumes no obligation to use the remaining $500 million authorization.

Information is based on a company press release statement.