Allergan announced that the company's board of directors has authorized a new $2 billion share repurchase program, and has affirmed its commitment to increasing its regular quarterly cash dividend annually for shareholders as part of the company's capital allocation strategy.
As part of its commitment to maintaining investment grade credit ratings, the company also reaffirmed its commitment to pay down $3.75 billion of debt in 2018.
These actions reflect the company's conviction in its business strategy and strong future cash flow position, allowing for periodic return of cash to shareholders through dividends and share buybacks while maintaining investment grade ratings and continuing its debt pay down strategy, according to a company news release.
In reaffirming its 2017 financial guidance issued on August 3, 2017 the company also affirmed third quarter revenue projections.
"We continue to believe that Allergan stock is substantially undervalued, and the share price today presents a unique investment opportunity for the company. Our financial strength and cash flow, strong portfolio of products, and diversified pipeline allow us to balance return of capital to shareholders through a flexible share repurchase program and a growing dividend. In its decision, the board is demonstrating its confidence in our future prospects," Brent Saunders, Chairman, CEO and President of Allergan, said in the news release. "Today's actions by the board follow our recently completed repurchase of $15 billion of Allergan common stock and strikes the right balance in our desire to return capital to our shareholders while maintaining our focus on investment-grade credit ratings."