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- Title
Robbing Peter to pay Paul.
- Authors
Jacobs, Tom
- Abstract
The article analyzes the decision of California-based biotechnology companies, Genentech and Amgen to buy back its stock in 2004 and 2005. Amgen has consistently bought back more of its shares than it has issued in options over the past five years; while, Genentech buys back only enough to maintain the status quo. This suggests that buybacks are not an effective way to return capital to shareholders, and that dividends are the preferred means to return cash to shareholders.
- Subjects
STOCK repurchasing; GENENTECH Inc.; AMGEN Inc.; CORPORATE finance; PHARMACEUTICAL biotechnology industry
- Publication
Nature Biotechnology, 2006, Vol 24, Issue 11, p1341
- ISSN
1087-0156
- Publication type
Article
- DOI
10.1038/nbt1106-1341