BB Biotech to give 10% a year to shareholders

Swiss fund BB Biotech (SIX:BION; Xetra:BBZA) plans to offer a 10% return annually to shareholders through a combination of cash distributions and share buybacks. The proposal is subject to shareholder approval at its 2013 annual meeting, which will be in March at the latest.

Prior to the meeting, the fund plans to repurchase 620,000 shares (4.8%) under the existing share buyback program, and intends to seek shareholder authorization for further annual share buybacks of about 5%. BB Biotech is planning a cash distribution in 2013 of CHF4.50 per share, which is 4.9% of Thursday's close of CHF91.40. That is about CHF55.7 million ($56.7 million) total, which would not be taxable in Switzerland. The BB Biotech board suggested continued annual cash distributions of about 5% of the prevailing share price. ...