Biotech Tweet of the Week: Share Buybacks

We've got a pair of related tweets on this week's episode of Biotech Banter. The first is from Jason Napodano, an analyst at Zacks, who asks, "Does anyone actually finish a share buyback in biotech, or do they just announced another one after they get half way through the previous one?"

And then a second one from EP Vantage's Jacob Plieth, who comments, "Here we go-another slap in the face of the small biotech M&A thesis."

Both are referring to Gilead Sciences' (NASDAQ: GILD  ) recent announcement that its board had approved a $5 billion stock buyback. That's on top of the $2.9 billion remaining from the last $5 billion buyback.

In the video below, senior biotech specialist Brian Orelli and health-care analyst David Williamson debate whether it's better for large biotechs such as Gilead, Celgene (NASDAQ: CELG  ) , and Biogen Idec (NASDAQ: BIIB  ) , to buy back shares, use the cash to purchase companies to bolster their pipelines, or to follow Amgen's (NASDAQ: AMGN  ) lead and return cash to investors in the form of a dividend.

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Brian Orelli

Dr. Orelli is a Senior Biotech Specialist. He has written about biotech, pharmaceutical, and medical device companies for The Motley Fool since 2007.

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Related Tickers

9/2/2015 4:00 PM
GILD $104.27 Up +2.78 +2.74%
Gilead Sciences CAPS Rating: *****
AMGN $152.29 Up +4.83 +3.28%
Amgen CAPS Rating: ****
BIIB $304.21 Up +11.71 +4.00%
Biogen Idec CAPS Rating: ****
CELG $119.58 Up +4.12 +3.57%
Celgene CAPS Rating: *****