Speculation has run hot that Swiss drugmaker Novartis A.G. (NYSE: NVS) would announced further restructuring at its investor day in London. Instead, on Friday the company announced a $5 billion share buyback program and said that it would develop new business segments in dermatology, heart failure and respiratory illnesses.

In the wake of the departure of long-time chairman and former chief executive Daniel Vasella, the company has been reviewing its operations with an eye toward divesting itself of assets that lack the scale to become world leaders. CEO Joe Jimenez said earlier this month that the company would consider selling off its non-strategic animal health and over-the-counter (OTC) businesses if it cannot turn them into businesses on a global scale.

Novartis said in a statement Friday that it will set aside capital for a strong and growing dividend, bolt-on acquisitions and a $5 billion share buyback, all which will take place over the next two years. The share repurchases are to begin immediately. The buyback is part of an $11 billion plan initiated in 2008. More than three-quarters of that plan still remain.

The Basel-based pharmaceutical company also said it would consolidate its research sites worldwide and review its manufacturing sites in its ongoing effort to cut costs and improve productivity. Novartis expects to deliver annual productivity gains of 3% to 4% for the next two years.

Earlier this month, Novartis said it had agreed to sell its blood transfusion testing unit to Madrid-based Grifols S.A. (NASDAQ: GRFS), the world’s third-largest blood products maker, for $1.68 billion.

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