Emergent BioSolutions To Implement $50 Million Share Buyback Program

Emergent BioSolutions Inc. EBS disclosed that its Board has authorized its management to execute share buyback program of a maximum of $50 million. The repurchase of the stock would be made from time to time on the open market or in privately negotiated transactions.

Emergent BioSolutions said the repurchase program would be funded with the help of its working capital. At the end of March, it had cash and cash equivalents of about $341 million. The company has about 39.8 million shares of common stock outstanding at the end of March.

The company clarified that the timing, amount, and price of any repurchases would be made following one or more 10b5-1 plans. The company indicated that the term of the authorization is until December next year. The company clarified that its share buyback program might be discontinued or suspended any time.

Emergent BioSolutions president and CEO, Daniel, Abdun-Nabi, said, "The company's board and management believe that Emergent's stock price does not reflect what we consider are the fundamentals of our company's value. This $50 million stock repurchase program is an opportunity to potentially create long-term shareholder value while maintaining our financial flexibility to invest in our business and to continue to pursue our acquisition strategy."

Shares of the company advanced 1 percent on Friday.