Pfizer Inc Tuesday said it has announced  a new share buyback programme for $10 billion as Lipitor lost about 15% of its market in the first week the cholestrol pill faced generic competition, the pharmaceutical major said.

The quarterly dividend was raised to 22 cents a share from 20 cents. The stock buyback is in addition to Pfizer’s existing programme, the drug maker stated.

Apart from announcing the share buyback programme and also dividend Ian Read, the company’s Chief Executive Officer was also appointed as chairman of the board.

The generic versions of the drug accounted for about 15% of the Lipitor market in the week ended December 2.

Under the current buyback programme, Pfizer has bought back $6.5 billion of shares on November 1 and it anticipates buyback between $7 billion and $9 billion this year, the company said in a statement.

 Under the new repurchase programme, Pfizer plans to buy about $5 billion of its stock in 2012 with the rest of the $10 billion amount available in 2013 and beyond.

“The dividend increase and new share repurchase program are a testament to our continued commitment to enhancing shareholder value and to our continued confidence in the business,” Ian Read, Chief Executive Officer said. 

Read took over the board chairman position from George Lorch who will become an independent director. Meanwhile, Read became CEO after Jeffrey Kindler resigned as chief executive officer and chairman in December 2010.

Furthermore, Lorch was named to the board post a few days later. Pfizer is an American multinational pharmaceutical company based in New York having its research headquarters in Groton, Connecticut in U.S.