Shares of biopharmaceutical company Incyte Corp climbed more than 8 per cent in morning session on Monday after saying it would buy back up to $2 billion of its stock.
At 1:13 p.m. EDT, Incyte Corp shares were at $57.27, 7.93 per cent higher in New York.
Shares Buyback
Incyte on Monday announced that its Board of Directors approved a share repurchase authorization of $2.0 billion.
The company has started a modified “Dutch Auction” tender offer to buy back shares of its common stock for an aggregate purchase price of up to $1.672 billion.
ALSO READ: Wall Street today: US stocks rise as investors eye inflation data
“This tender offer reflects our confidence in the future outlook of our business, the strength of our commercial product portfolio and our clinical development pipeline and Incyte’s long-term value. We believe the current valuation of Incyte stock makes repurchases of our stock an attractive investment and an opportunity to enhance long-term shareholder value,” said Hervé Hoppenot, chief executive officer, Incyte Corp.
Quarter Results
On April 30, the Delaware-based company had reported its first quarter profit below Wall Street estimates on weak sales of its blood cancer drug Jakafi.
Jakafi sales fell 1 per cent to $571.8 million in the first quarter.
Its total revenue stood at $880.90 million, below Wall Street estimates. Revenue generated by the drugmaker from royalties was $126 million, up 9 per cent from a year earlier.
Hoppenot had said: “As anticipated, the revenue growth during the quarter was offset by an inventory drawdown for Jakafi and the typical first-quarter net pricing dynamics.”
During the first quarter, Incyte had gained worldwide exclusive global rights for Monjuvi, approved by the FDA for the treatment of certain kinds of blood cancer, from MorphoSys AG.
Last month, the drugmaker announced that it had entered into a definitive pact to acquire Escient Pharmaceuticals, a clinical-stage company involved in the development of treatment of various skin diseases.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 13 May 2024, 11:04 PM IST