Amgen Rallies 3% After Announcing Growth And Capital Plans

Amgen, Inc. AMGN shares rallied more than 3 percent after it announced strategy, growth objectives and capital allocation plans Tuesday.

The news follows after the company beat Q3 earnings expectations Monday.

According to the company’s press release, it plans to payout approximately 60 percent of Adjusted Net Income on average to shareholders through 2018 and will re-initiate a share repurchase with plans for approximately $2 billion through 2015 with plans to increase dividends 30 percent beginning Q1 2015.

The company also guided to improve Adjusted Operating Margin of 52-54 percent by 2018 and expected to deliver double-digit adjusted Earnings Per Share (EPS) growth on average through 2018. According to the press release, $1.5 billion in annual savings were planned by 2018.

The company announced preparations to launch four high-potential innovative medicines in 2015 and expands Biosimilars Portfolio to nine programs with a total portfolio representing a $3 billion plus opportunity.

The press release also noted that it will launch next-generation biomanufacturing technologies in 2017.

The company provided preliminary 2015 guidance of revenues of $20.8-$21.3 billion and Adjusted EPS of $9.05-$9.40.

Amgen Inc. opened at $153.49, up 3.5 percent.