OPKO Health Announces $100 Million Share Repurchase Program
Rhea-AI Summary
OPKO Health (NASDAQ: OPK) has announced a $100 million share repurchase program, authorized by its Board of Directors. The program allows OPKO to repurchase shares through various methods, including open market purchases and block trades. With approximately 697 million shares outstanding as of June 30, 2024, this authorization represents about 10.1% of shares outstanding at the current stock price.
CEO Phillip Frost stated that the company believes its shares are significantly undervalued and offer an attractive investment opportunity. The repurchase program is expected to be funded from existing cash, cash equivalents, and future cash flows. OPKO's recent non-dilutive capital transaction with HealthCare Royalty and prior convertible debt refinancing have provided financial flexibility for this initiative.
Positive
- Authorization of $100 million share repurchase program
- Repurchase represents 10.1% of outstanding shares at current price
- Management believes shares are significantly undervalued
- Recent non-dilutive capital transaction and debt refinancing provide financial flexibility
- Commitment to drive long-term shareholder value
Negative
- Potential reduction in cash reserves for other investment opportunities
- No guarantee of share price appreciation despite buyback
News Market Reaction 1 Alert
On the day this news was published, OPK gained 7.04%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MIAMI, July 18, 2024 (GLOBE NEWSWIRE) -- OPKO Health, Inc. (NASDAQ: OPK) today announced that its Board of Directors has authorized the repurchase of up to
OPKO currently expects to fund the repurchase program from existing cash and cash equivalents, and future cash flows. The Company had approximately 697 million shares outstanding as of June 30, 2024. This new authorization represents approximately
“We believe OPKO’s shares are significantly undervalued and offer an attractive investment opportunity. Buying back shares supports our conviction in OPKO’s strategy as we continue to advance our pipeline in the clinic and streamline our diagnostic segment on a path to profitability,” said Phillip Frost, M.D., Chairman and Chief Executive Officer of OPKO. “With the recent non-dilutive capital transaction with HealthCare Royalty and prior convertible debt refinancing, our balance sheet provides us with the financial flexibility for this repurchase program, which reflects our commitment to drive long-term value for our shareholders.”
The volume and timing of any repurchases will be subject to general market conditions, as well as the Company’s management of capital, other investment opportunities and other factors. The repurchase program does not obligate the Company to repurchase any specific number of shares, has no time limit and may be modified, suspended or discontinued at any time at the Company’s discretion.
About OPKO Health
OPKO Health is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development and commercialization expertise, and its novel and proprietary technologies. For more information, visit www.opko.com.
Cautionary Statement Regarding Forward Looking Statements
This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), including, among other things, statements related to expected purchases under the Repurchase Program. These forward-looking statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Many factors could cause the Company’s actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in the Company’s Annual Reports on Form 10-K filed and to be filed with the Securities and Exchange Commission and under the heading “Risk Factors” in the Company’s other filings with the Securities and Exchange Commission. In addition, forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
Contacts:
LHA Investor Relations
Yvonne Briggs, 310-691-7100
ybriggs@lhai.com
or
Bruce Voss, 310-691-7100
bvoss@lhai.com
FAQ
What is the size of OPKO Health's share repurchase program?
When did OPKO Health announce its share repurchase program?
What percentage of OPKO Health's outstanding shares does the repurchase program represent?
How will OPKO Health fund the share repurchase program?
Does the share repurchase program have a time limit for OPKO Health?
