Allergan shares jump 3.4% on $2 billion buyback news

26 September 2017

The share price of Ireland-incorporated drugmaker Allergan (NYSE: AGN) closed at $211.61 on Monday, up 3.4% for the day, after the company announced a $2 billion share buyback program and reiterated its pledge to pay down $3.75 billion of debt in 2018.

Allergan affirmed its commitment to increasing its regular quarterly cash dividend annually for shareholders, who had seen the value of their shares decline by around 20% in the last two months.

The planned stock buyback follows Allergan's completion of a separate $15 billion repurchase, and comes after the company reported mixed trial data for its experimental treatment of nonalcoholic steatohepatitis liver fibrosis."We continue to believe that Allergan stock is substantially undervalued"

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