Biogen Inc (NASDAQ: BIIB) is making its way into the green this mroning after announcing a buyback program. The program comes after the company saw a painful drop in value after announcing the discontinuation of a clinical study. Today, we’ll talk about:
- The BIIB stock buyback program;
- what we’re seeing from the stock in the market; and
- what we’ll be watching for ahead.
BIIB Stock Sees Green On Buyback Program
As mentioned above, Biogen is having a decent start to the trading session this morning after disclosing a new stock repurchase program. The repurchase program was disclosed in a filing. However, the company has not announced the program via press release as of yet.
Nonetheless, the stock repurchase program has no expiration date. Under the program, the company intends on repurchasing $5.0 billion BIIB common stock.
The news comes after the company discontinued late stage clinical trials of its Alzheimer’s treatment candidate. Unfortunately the results of the interim analysis showed that it was unlikely that the treatment would meet its primary endpoing. As a result, BIIB stopped the bleeding and fell 32.4% in the market on Friday after announcing the news.
Based on the closing price of the stock on Friday, the buyback would authorize just over 30 million shares. This represents about 15.7% of shares outstanding.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to keep a close eye on the news. While Friday’s news proved to be painful, the disclosure today is positive.
After all, when a company buys its own stock back, it shows that it has confidence in its own ability to provide long-term value to investors. That’s exactly what Biogen is doing here.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:27), BIIB is trading at $220.89 per share after a gain of $4.18 per share or 1.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BIIB. In particular, we’re interested in following the story surrounding the company’s continued work to bring value back to its investors after tumbling on Friday. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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