WOODCLIFF LAKE, N.J.–(BUSINESS WIRE)–Eagle Prescribed drugs, Inc. (Nasdaq: EGRX) (“Eagle” or the “Company”) as we speak introduced that its Board of Administrators has accepted a $25 million accelerated share repurchase (“ASR”) transaction with JPMorgan Chase Bank, Nationwide Affiliation (“JP Morgan”) as a part of the Firm’s present $160 million share repurchase program.
The particular variety of shares to be repurchased pursuant to the ASR relies on the common of the each day quantity weighted common share costs of the Firm’s frequent stock, much less a reduction, through the time period of the ASR program. Based mostly on yesterday’s closing price, the $25 million ASR would characterize roughly 5% of the Firm’s fundamental excellent shares. Upon completion of the ASR, Eagle can have purchased again a complete of roughly $205 million of its stock since its IPO in 2014.
“The $25 million ASR reflects our ongoing confidence in our pipeline and continued earnings potential. With multiple opportunities to expand our RYANODEX franchise, the anticipated near-term launch of vasopressin, and three potential oncology launches in 2022 including PEMFEXY, fulvestrant and SM-88, along with the recent approval received by our Japanese marketing partner, SymBio, for its ready-to-dilute TREAKISYM product, we remain committed to building shareholder value,” acknowledged Scott Tarriff, Chief Govt Officer of Eagle Prescribed drugs.
Beneath the phrases of the settlement, Eagle can pay $25 million to JP Morgan on September 24, 2020, and obtain 505,817 shares, representing roughly 80% of the notional quantity of the ASR, based mostly on the closing price of $39.54 on September 23, 2020. Upon settlement of the ASR, the ultimate variety of shares repurchased shall be trued up based mostly on the common of the each day quantity weighted common share costs of the Firm’s frequent stock, much less a reduction, through the time period of the accelerated share repurchase program. Eagle expects the ASR to be accomplished within the fourth quarter of 2020. As of September 23, 2020, the Firm had 13.5 million frequent shares excellent.
The Firm intends to make use of cash available to fund the ASR program. As of June 30, 2020, cash and cash equivalents have been $108.2 million, internet accounts receivable was roughly $46.eight million, and debt was $37 million.
About Eagle Prescribed drugs, Inc.
Eagle is a totally built-in pharmaceutical firm with analysis and improvement, scientific, manufacturing and industrial experience. Eagle is dedicated to creating revolutionary medicines that lead to significant enhancements in sufferers’ lives. Eagle’s commercialized merchandise embody RYANODEX®, BENDEKA®, BELRAPZO®, and its oncology and CNS/metabolic essential care pipeline consists of product candidates with the potential to handle underserved therapeutic areas throughout a number of illness states. Further data is out there on Eagle’s web site at www.eagleus.com.
This press launch incorporates forward-looking data throughout the that means of the Non-public Securities Litigation Reform Act of 1995, as amended, and different securities legal guidelines. Ahead-looking statements are statements that aren’t historic details. Phrases and phrases reminiscent of “anticipated,” “forward,” “will,” “would,” “may,” “remain,” “potential,” “prepare,” “expected,” “believe,” “plan,” “near future,” “belief,” “guidance,” and comparable expressions are meant to establish forward-looking statements. These statements embody, however aren’t restricted to, statements relating to future occasions together with, the Firm’s plans to repurchase shares of frequent stock pursuant to the ASR and the timing of such repurchases; the anticipated final result of the ASR and the Firm’s present share repurchase program; the Firm’s expectations with respect to financing the ASR; the anticipated progress alternatives for the merchandise and product candidates of the Firm and its companions; the Firm’s expectations with respect to earnings potential; and the Firm’s means to ship value to its stockholders. All of such statements are topic to sure dangers and uncertainties, lots of that are troublesome to foretell and usually past the Firm’s management, that would trigger precise outcomes to vary materially from these expressed in, or implied or projected by, the forward-looking data and statements. Such dangers and uncertainties embody, however aren’t restricted to: dangers that the Firm’s or its companions’ enterprise, monetary situation and outcomes of operations shall be impacted by the unfold of COVID-19 within the geographies the place such events function; whether or not the Firm will incur unexpected bills or liabilities or different market elements in reference to COVID-19; the success of the Firm’s collaborations with its strategic companions; profitable compliance with governmental laws relevant to product approvals, manufacturing amenities, merchandise and/or companies; common financial circumstances, together with the potential antagonistic results of public well being points, together with the COVID-19 pandemic, on financial exercise and the efficiency of the monetary markets typically; the fluctuation of rates of interest; the power and enforceability of the Firm’s mental property rights or the rights of third events; competitors from different pharmaceutical and biotechnology corporations and the potential for competitors from generic entrants into the market; the dangers inherent within the early levels of drug improvement and in conducting scientific trials; and people dangers and uncertainties recognized within the “Risk Factors” sections of the Firm’s Annual Report on Kind 10-Ok for the yr ended December 31, 2019 as up to date by the Firm’s subsequent filings with the Securities and Change Fee. Readers are cautioned to not place undue reliance on these forward-looking statements that talk solely as of the date hereof, and the Firm doesn’t undertake any obligation to revise and disseminate forward-looking statements to mirror occasions or circumstances after the date hereof, or to mirror the incidence of or non-occurrence of any occasions.