BRIEF—Additional $3 billion share buy-back planned by Celgene

US biotech major Celgene yesterday announced that its board of directors authorized the repurchase of an additional $3 billion of the company's common stock.

In addition, Celgene plans to enter into an accelerated share repurchase (ASR) agreement to repurchase an aggregate of $2 billion of the company’s common stock.

The news pushed Celgene's shares 2.4% higher to $79.54 by close of trading yesterday.

The planned ASR will utilize part of the existing Board authorized share repurchase program as well as part of the new authorization.

The remaining authorization will be used in Celgene’s continuing open-ended program effective immediately.

Additional stock purchases outside the ASR may be made in the open market or in privately negotiated transactions from time to time, as determined by Celgene's management and in accordance with the requirements of the Securities and Exchange Commission.

“The increase in our share repurchase authorization and planned accelerated share repurchase program reflects our confidence in the long-term potential of Celgene,” said Mark Alles, chairman and chief executive, adding: “Strategically, we are committed to investing in our innovative pipeline to continue to grow our portfolio and meaningfully increase shareholder value.”