Allergan announces $2bn share buyback, CFO to retire

Dublin-based biopharmaceutical group Allergan said it has authorised a new $2bn stock repurchase programme and affirmed its commitment to increasing its cash dividend yearly on Monday as it announced the departure of its chief financial officer.

The company also reaffirmed its commitment to pay down $3.75bn of debt next year as it seeks to maintain investment grade credit ratings.

Chairman and chief executive officer Brent Saunders said: "We continue to believe that Allergan stock is substantially undervalued, and the share price today presents a unique investment opportunity for the company. Our financial strength and cash flow, strong portfolio of products, and diversified pipeline allow us to balance return of capital to shareholders through a flexible share repurchase program and a growing dividend. In its decision, the board is demonstrating its confidence in our future prospects.

"Today's actions by the board follow our recently completed repurchase of $15bn of Allergan common stock and strikes the right balance in our desire to return capital to our shareholders while maintaining our focus on investment-grade credit ratings."

Allergan also announced the retirement of its vice president and CFO Tessa Hilado.

Hilado said: "When I joined Allergan in December 2014, I promised Brent Saunders, chairman and CEO, that I would stay three years to help transform the finance organisation, institute better systems and financial controls and improve the balance sheet.

"I am proud of the improvements we have made in each of these areas and the talent that we have attracted to our finance organisation over that time, including new leaders for Commercial Finance, Tax, Research & Development Finance and Investor Relations & Strategy. Now is a good time to announce my retirement from Allergan so that we have time to identify my successor and orchestrate a smooth hand-off to continue Allergan's progress."