Amgen shares jump as firm unveils plans for a $5 billion stock purchase

USA-based Amgen (Nasdaq: AMGN), the world’s largest independent biotech firm, saw its shares leap 5.9% to $58.43 by close of trading on Monday, after the company announced it has launched a modified Dutch auction tender offer to purchase up to $5 billion of its common stock. Amgen also announced a public offering of its senior notes, the proceeds of which will be used to fund the tender offer and for general corporate purposes.

"This tender offer reflects Amgen's confidence in the future outlook of our business and the Company's long-term value," said Kevin Sharer, chairman and chief executive at Amgen, adding: "Our strong balance sheet and cash flow enable us to complete this transaction in an attractive interest rate environment while also preserving the flexibility to further accelerate the growth of our business through focused, strategic acquisitions."