Celgene Corp.'s board authorized the repurchase of an additional $3 billion of the company's common shares, adding to its $5 billion repurchase program authorized in February.
The Summit, N.J.-based drugmaker plans to implement $2 billion of the buybacks under an accelerated share repurchase agreement.
Under an accelerated share repurchase, companies can repurchase large blocks of their outstanding shares via an investment bank on an expedited basis.
The remaining authorization will be used in the company's continuing open-ended program, effective May 24. Additional stock purchases outside of the accelerated share repurchase will be made in the open market or in privately negotiated transactions.
Moody's said the share purchase was credit negative for the company, though there is no impact on Celgene's Baa2 senior unsecured long-term rating.
