Biogen (BIIB - Get Report) on Monday announced that its board approved a $5 billion share repurchase program - just days after the company said it had ended its trial for what had appeared to be a promising potential Alzheimer's treatment.
In a filing with the Securities and Exchange Commission on Monday, Biogen said its approved repurchasing up to $5 billion of the company's common shares outstanding as part of its 2019 share repurchase program.
The program is in addition to the approximately $1.7 billion remaining under the current program authorized by the company's board last August.
The move comes days after Biogen revealed that its phase III trial of aducanumab, which it was conducting alongside Japan's Eisai (ESALY) , was deemed unlikely to be successful in producing a treatment for the degenerative disease - an announcement that wiped out nearly $20 billion in market value.
The announcement was particularly disappointing because it had come farther along than other trials and studies in terms of potentially treating patients with mild cognitive impairment due to Alzheimer's disease or mild Alzheimer's disease dementia.
Biogen shares rose 1.2% to $291.30 on Monday.
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