Friday, Apr 21, 2006
South San Francisco, Calif. -- April 21, 2006 --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 $2 billion of its common stock for a total of $6 billion through June 30, 2007. The Board also amended the current repurchase program by increasing the maximum number of shares that can be repurchased from 80 million to 100 million shares.
As of March 31, 2006, Genentech has purchased approximately 52 million shares of its common stock under the stock repurchase program at an aggregate cost of approximately $3.6 billion. The Board initially approved $1 billion for repurchases of common stock under the stock repurchase program in December 2003 and extended the stock repurchase program by an additional $1 billion in September of 2004 and an additional $2 billion in June of 2005.
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, 2006, Genentech had 1,053,797,474 shares of common stock outstanding.
Founded 30 years ago, 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 and licenses several additional products to other companies. 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.