Shares of Allergan jumped in pre-market trading Tuesday after the company said its board has authorized a new share repurchase program of up to $10 billion.
The healthcare company, whose $160 billion merger with Pfizer Inc fell apart last month, said it expects to buy back $4 to $5 billion in the open market over four to six months, subject to market conditions.
The Botox maker also reported a 48 percent rise in quarterly revenue, led by a strong performance by its branded drugs business, which includes Botox and the eye drug Restasis.
The company reported net income attributable to ordinary shareholders of $186.1 million, or 47 cents per share, for the first-quarter ended March 31, compared with a loss of $535.2 million, or $1.85 per share, a year earlier.
Revenue rose to $3.80 billion from $2.56 billion.
Allergan added it may extend the share repurchase program if favorable market conditions persist, and following the completion of the initial portion of the share repurchase program and the implementation of an increase in distributable reserves. Allergan said the program can be discontinued at any time.
The buyback program can begin when Allergan completes the $40.5 billion sale of its global generics business to Teva, which is expected to be completed by the end of June.
Data from Reuters were used to report this story.