Anixa Biosciences Announces $5 Million Share Repurchase Program
Anixa Biosciences (NASDAQ: ANIX), a biotechnology company focused on cancer treatment and prevention, has announced a $5 million share repurchase program. The program, authorized by the Board of Directors, allows for the repurchase of outstanding common stock over a 12-month period. Dr. Amit Kumar, Chairman and CEO, stated that this decision reflects confidence in the company's future outlook, balance sheet strength, and clinical development pipeline. He also expressed the belief that Anixa's stock is currently undervalued.
The repurchases will be made through open-market transactions in compliance with securities laws. The program can be suspended or discontinued at any time, and no shares have been repurchased to date. This initiative aims to enhance long-term shareholder value.
- Authorization of a $5 million share repurchase program
- Management's confidence in the company's future outlook and balance sheet strength
- Potential enhancement of long-term shareholder value
- Belief that the company's stock is currently undervalued
- No guarantee of the number or timing of share repurchases
- Program to a 12-month period
- Potential impact on cash reserves
Insights
Share repurchase programs are often viewed positively by the market as they indicate that the company believes its stock is undervalued. In this case, Anixa Biosciences has allocated
From a financial perspective, a share repurchase reduces the number of outstanding shares. This can lead to a higher earnings per share (EPS), as the same amount of earnings is spread across fewer shares, potentially boosting the stock price. Additionally, it signals to investors that the company has sufficient cash flow to return capital to shareholders, rather than using it for other investments or paying down debt.
However, it's important to note that this program's actual impact on the stock price will depend on the execution and whether the market shares the management's view of the company being undervalued. If the company fails to deliver on its clinical milestones or if market conditions worsen, the buyback might not have the desired effect.
For retail investors, it's vital to assess how this share repurchase program fits into the broader market context. Biotechnology companies like Anixa often experience stock price volatility due to the unpredictable nature of clinical trials and regulatory approvals. Hence, a share repurchase program can provide some stability and support to the stock price.
Moreover, investors should consider the timing of the buyback. If Anixa's clinical pipeline shows promising results during the repurchase period, it could amplify the positive effects on the stock price. Conversely, if there are setbacks, the repurchase might not be sufficient to counter negative market reactions.
Retail investors should also keep an eye on the extent to which this program is implemented. The announcement alone might create short-term enthusiasm, but the actual buying activity will be more telling about the company's commitment to supporting its stock price.
"This share repurchase program reflects our confidence in the future outlook of our business, the soundness of our balance sheet, the strength of our clinical development pipeline and Anixa's long-term value. We believe that Anixa's stock is currently undervalued and this program provides an opportunity to enhance long-term shareholder value," stated Dr. Amit Kumar, Chairman and CEO of Anixa.
Repurchases may be made from time to time at the discretion of the Board of Directors through open-market transactions in accordance with applicable securities laws. The repurchase program expires in twelve months and can be suspended or discontinued at any time. No shares have been repurchased under the program to date. There can be no assurance as to the timing or number of shares of any repurchases, if any.
About Anixa Biosciences, Inc.
Anixa is a clinical-stage biotechnology company focused on the treatment and prevention of cancer. Anixa's therapeutic portfolio consists of an ovarian cancer immunotherapy program being developed in collaboration with Moffitt Cancer Center, which uses a novel type of CAR-T, known as chimeric endocrine receptor T-cell (CER-T) technology. The Company's vaccine portfolio includes vaccines being developed in collaboration with Cleveland Clinic to prevent breast cancer – specifically triple negative breast cancer (TNBC), the most lethal form of the disease – and ovarian cancer, as well as additional cancer vaccines to address many intractable cancers, including high incidence malignancies in lung, colon, and prostate. These vaccine technologies focus on immunizing against "retired" proteins that have been found to be expressed in certain forms of cancer. Anixa's unique business model of partnering with world-renowned research institutions on all stages of development allows the Company to continually examine emerging technologies in complementary fields for further development and commercialization. To learn more, visit www.anixa.com or follow Anixa on Twitter, LinkedIn, Facebook and YouTube.
Forward-Looking Statements
Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect Anixa's current expectations concerning future events and results. We generally use the words "believes," "expects," "intends," "plans," "anticipates," "likely," "will" and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in "Item 1A - Risk Factors" and other sections of our most recent Annual Report on Form 10-K as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this press release.
Contact:
Mike Catelani
President, COO & CFO
mcatelani@anixa.com
408-708-9808
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SOURCE Anixa Biosciences, Inc.
FAQ
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