Maxygen increases stock repurchase program to $20 million

Maxygen, Inc. (Nasdaq:MAXY), a biotechnology company, today announced that its Board of Directors has approved an increase to the company's current stock repurchase program from $10.0 million to $20.0 million. The repurchase program expires on December 31, 2011.

“Management's Discussion and Analysis of Financial Condition and Results of Operations”

Since December 2009, Maxygen has repurchased approximately 11.7 million shares of its common stock at an aggregate cost of approximately $63.5 million, including approximately 1.7 million shares repurchased under the current repurchase program since June 2011 at an aggregate cost of approximately $9.5 million.

Under the current repurchase program, Maxygen may repurchase its common stock from time to time, in amounts, at prices and at such times as it deems appropriate. Maxygen may make repurchases in the open market, in privately negotiated transactions, in accelerated repurchase programs, in structured share repurchase programs, or pursuant to a 10b5-1 plan. Any repurchases will be conducted in compliance with the SEC's Rule 10b-18 and applicable legal requirements and will be subject to market conditions and other factors. The program does not obligate Maxygen to acquire any particular amount of common stock and the program may be modified or suspended at any time at the company's discretion. Any repurchases will be funded from available cash on hand.

As of June 30, 2011, Maxygen held approximately $171.4 million in cash and cash equivalents and remains eligible for a payment of up to $30.0 million from Bayer HealthCare LLC related to the sale of hematology assets to Bayer in July 2008.