Investing.com -- Amgen Inc (O:AMGN) announced on Tuesday afternoon that its Board of Directors authorized a $1.00 per share dividend for the first quarter of 2016, representing a 27% increase from its previous declaration.
The dividend will be paid on March 8, 2016, to all shareholders of record at the close of business on Feb. 16. The dividend represents a substantial increase from quarterly dividends paid by the pharmaceutical giant in each of the last four quarters. In October, Amgen's board declared a fourth quarter dividend of 0.79 per share, equaling the same dividend it paid for shareholders of record a quarter earlier.
The announcement also came one day after Amgen announced that it entered into a definitive agreement with one of its top rivals, GlaxoSmithKline, to reacquire all of its remaining rights to three drugs, which generated more than $110 million in combined sales last year. The agreement provides Amgen with rights to Prolia, an Osteoporosis drug, XGeva, a drug intended to treat multiple myeloma and Vectibix, a drug used in the treatment of metastatic colorectal cancer in 48 countries, including Brazil, China and Australia.
Previously, GlaxoSmithKline held select regional rights to Prolia and XGeva since 2009 and Vectibix since 2010.
"This unique agreement with GSK allows Amgen to regain rights to three important growth products, and to directly serve more patients in key expansion markets," said Robert A. Bradway, chairman and chief executive officer of Amgen. "The agreement also allows Amgen to build additional commercial infrastructure in oncology and bone health, two strategically important therapeutic areas for Amgen with emerging late-stage pipeline assets."
Amgen anticipates that the transaction will be accretive to its adjusted earnings in 2017, the company said in a statement.
Shares in Amgen fell 4.50 or 2.77% in after-hours trading to 158.11.