Merck To Buyback $10 Bln Stock

(RTTNews) - Merck & Co (MRK) on Tuesday said its board has authorized a $10 billion share buyback for its treasury.

This is in addition to the $1.7 billion remaining under the earlier program announced in May 2013.

Following the announcement, Merck shares gained 1.40% at $59.45 in after-hours trade on the New York Stock Exchange.

"The combination of this share repurchase program and our strong dividend reflects our ongoing commitment to returning cash and delivering value to shareholders," said Merck CEO Kenneth Frazier in a statement. "Today's action reiterates our confidence in the company's long-term business strategy and future prospects."