Biogen Idec announces share repurchase offer

Biogen Idec has announced that its board of directors has backed the use of a modified “Dutch auction” for a $3 billion (1.51 billion pounds) share repurchase programme.

The offer was launched earlier this week for around 16 per cent of the outstanding common stock in the firm – equal to 57 million shares.

Under the terms of the “Dutch auction” tender auction, existing shareholders in the firm may offer some or all their shares for a sum ranging between $47 and $53, with individuals able to indicate how many shares they wish to sell at a specific price within the available range.

James C Mullen, chief executive officer of Biogen Idec, said: “With strong cash flows from two of the most important franchises in biotechnology, Rituxan and Avonex and our confidence in Tysabri, we are well positioned to return value to shareholders while investing in our promising pipeline.”

He added that despite the outlay involved in this offer, the firm will still be well-placed to explore potential opportunities for external growth.

Earlier this month, Biogen Idec announced its financial results for the first quarter of the financial year, the firm recording revenues of $716 million, a 17 per cent rise on the same quarter in 2006.