Tuesday, Sep 28, 2004
South San Francisco, Calif. -- September 28, 2004 --Genentech, Inc. (NYSE: DNA) today announced that its Board of Directors has authorized the extension of its current stock repurchase program for the repurchase of up to an additional $1 billion of its common stock through December 31, 2005. The Board also amended the current repurchase plan by increasing the maximum number of shares that can be repurchased to 50 million from 25 million shares.
As of August 31, 2004, Genentech has made purchases of its common stock under the stock repurchase program at an aggregate cost of approximately $748 million. The Board initially approved $1 billion for repurchases of common stock under the stock repurchase program in December 2003.
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 periodic stock repurchases are to make prudent investments of the company's cash resources as well as to provide an effective mechanism to provide stock for the company's employee stock plans. There are currently no other specific plans for the shares which may be purchased under the program.
As of August 31, 2004, Genentech had approximately 1,055,372,385 shares of common stock outstanding.
Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for significant unmet medical needs. A considerable number of the currently approved biotechnology products originated from or are based on Genentech science. Genentech manufactures and commercializes multiple biotechnology products directly in the United States and licenses several additional products to other companies. The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange under the symbol DNA. For additional information about the company, please visit http://www.gene.com.