Allergan to buy back $10 billion of stock, Q1 earnings rise
Botox-maker Allergan (NYSE: AGN) said it plans to buy back as much as $10 billion in stock after completing the $40 billion sale of its generics business to Teva Pharmaceutical Industries (NYSE: TEVA).
The Dublin-based company said sale of its generics business will close in June and that it plans to use $8 billion of the total to write off its debts.
The company said it will purchase $4 billion to $5 billion in stock over four to six months, depending on market conditions. The company also reported first-quarter adjusted earnings ahead of estimates.
Chief Executive Brent Saunders, said: “As we think about our capital deployment options post the close of the Teva transaction, in addition to the stock repurchase program, we will have the ability to pay down debt to maintain our investment grade credit ratings and preserve significant firepower to invest for growth.”
Separately, the company reported first-quarter earnings of $3.04 a share, excluding special items against $ 2.65 a year ago.
Sales grew 48% to $3.80 billion compared with $2.56 billion a year earlier.
Revenue from Allergan’s US brands unit, including sales of Botox, grew 27.3% to $2.30 billion, the company said in a statement. The business accounts for about 60% of the company’s total revenue.
FDA rejects Allergan’s Abicipar pegol for neovascular age-related macular degeneration over benefit/risk concerns
The FDA has moved to reject Allergan’s vascular endothelial growth factor (VEGF) factor A inhibitor, …
The $63 billion merger of major pharma players AbbVie and Allergan could be facing hurdles …