By Josh Beckerman
Merck & Co. has increased its stock-buyback authorization by
$10 billion, a move the company said "reiterates our confidence in
the company's long-term business strategy and future
prospects."
Merck's repurchase authorization now stands at $11.7 billion,
including about $1.7 billion remaining under a program announced in
May 2013.
There is no designated time frame for the planned buybacks.
In February, Merck reported that fourth-quarter sales fell 7.4%
to $10.48 billion, with foreign-exchange accounting for three
percentage points of the drop. Sales of the anti-inflammatory drug
Remicade, which Merck markets in certain countries outside the
U.S., declined 10% due to competition from biosimilar versions in
Europe.
In after-hours trading, Merck shares were up 1.5% to $59.49.
Earlier Tuesday, Merck said it halted a study of its new cancer
immunotherapy Keytruda after positive clinical-trial news. The
company found the drug prolonged survival versus Bristol-Myers
Squibb's Yervoy in first-line treatment of patients with the skin
cancer melanoma.
Write to Josh Beckerman at josh.beckerman@wsj.com
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