Tuesday, Apr 15, 2008
South San Francisco, Calif -- April 15, 2008 --Genentech, Inc. (NYSE: DNA) today announced that its Board of Directors has authorized the extension of its current stock repurchase program through June 30, 2009. The Board also amended the current repurchase program by increasing the maximum number of shares that can be repurchased to 150 million shares from 100 million shares and increasing the total value of shares that can be repurchased to $10 billion from $8 billion.
As of March 31, 2008, Genentech has purchased approximately 79 million shares of its common stock under the stock repurchase program at an aggregate cost of approximately $5.7 billion.
The Board initially approved $1 billion for repurchases of common stock under the stock repurchase program in December 2003. The stock repurchase program was extended annually from 2004 through 2007, resulting in a cumulative value of $8 billion for repurchases of common stock at the end of 2007.
Purchases may be made in the open market or in privately negotiated transactions from time to time at management's discretion. Genentech also may engage in transactions in other Genentech securities in conjunction with the repurchase program, including derivative securities.
Genentech intends to use the repurchased stock to offset dilution caused by the issuance of shares in connection with Genentech's employee stock plans. The goals of the company's stock repurchase program are to make prudent investments of the company's cash resources, to allow for an effective mechanism to provide stock for the company's employee stock plans, and to address provisions of the affiliation agreement with Roche relating to its minimum ownership percentage in Genentech stock. There are currently no other specific plans for the shares which may be purchased under the program.
As of March 31, 2008, Genentech had approximately 1.05 billion shares of common stock outstanding.
Founded more than 30 years ago, Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes medicines for patients with significant unmet medical needs. The company has headquarters in South San Francisco, California and is listed on the New York Stock Exchange under the symbol DNA. For additional information about the company, please visit http://www.gene.com.