Incyte's stock rallies 9% after company says to buy back $1.67 billion of its own stock in Dutch auction tender

By Ciara Linnane

Biotech says board has approved share buyback authorization of up to $2 billion

Biotech Incyte Corp. said Monday its board has approved a share buyback of up to $2 billion and the company has commenced a modified Dutch auction tender for up to $1.67 billion worth.

The news sent the stock up 9% in early trade.

The offer "reflects our confidence in the future outlook of our business, the strength of our commercial product portfolio and our clinical development pipeline and Incyte's long-term value," Chief Executive Hervé Hoppenot said in prepared remarks.

The tender offer will be priced at no greater than $60 a share, which compares with the stock's (INCY) closing price Friday at $53.06.

In addition, the company has an agreement with Julian C. Baker, a member of its board, Felix J. Baker, and units affiliated with the two including funds advised by Baker Bros. Advisors LP, to repurchase up to $328 million of the company's common stock.

That will allow the Baker entities to maintain their current stake of about 16.4% of Incyte's outstanding stock. The Baker entities will pay the same price as in the tender offer.

The stock is down 8% in the year to date, while the S&P 500 SPX has gained 9.5%.

-Ciara Linnane

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05-13-24 1016ET

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