Fulgent Genetics Announces $250 Million Share Repurchase Program

Rhea-AI Summary

Fulgent Genetics, Inc. (NASDAQ: FLGT) announced a share repurchase program allowing the purchase of up to $250 million in its common stock. The program aims to return capital to shareholders amid share price volatility. With over $1.0 billion in cash and investments, the company is well-positioned to pursue growth while implementing this buyback strategy. Repurchases will depend on market conditions and may utilize various methods. Approximately 30.3 million shares were outstanding as of March 7, 2022.

Positive

• Authorization of a $250 million share repurchase program to enhance shareholder value.
• Strong liquidity with over $1.0 billion in cash and investments, enabling strategic growth initiatives.

Negative

• None.

TEMPLE CITY, Calif.--(BUSINESS WIRE)-- Fulgent Genetics, Inc. (NASDAQ: FLGT) (“Fulgent” or the “Company”), a technology-based genetic testing company focused on transforming patient care in oncology, infectious and rare diseases, and reproductive health, today announced that its Board of Directors has authorized a share repurchase program under which Fulgent may repurchase up to $250 million in shares of its common stock.

“Given the volatility we have seen in our share price, we believe current trading levels present an attractive opportunity to implement a share repurchase program as a way to return capital to our shareholders,” said Paul Kim, Chief Financial Officer of Fulgent. “With our current cash, cash equivalents and investments in marketable securities position now exceeding $1.0 billion, we believe we remain extremely well capitalized to make strategic investments to drive growth as we implement this share repurchase program.”

The timing and amount of any shares repurchased will be determined by Fulgent’s management based on its evaluation of market conditions and other factors. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, in block trades, accelerated share repurchase transactions, exchange transactions, or any combination of such methods. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.

The repurchase program will be funded using Fulgent’s working capital. Fulgent had approximately 30.3 million shares of common stock outstanding as of March 7, 2022.

About Fulgent Genetics

Fulgent Genetics is a technology-based genetic testing company focused on transforming patient care in oncology, infectious and rare diseases, and reproductive health. Fulgent’s proprietary technology platform has created a broad, flexible test menu and the ability to continually expand and improve its proprietary genetic reference library while maintaining accessible pricing, high accuracy, and competitive turnaround times. Combining next generation sequencing (“NGS”) with its technology platform, the Company performs full-gene sequencing with deletion/duplication analysis in an array of panels that can be tailored to meet specific customer needs. A cornerstone of the Company’s business is its ability to provide expansive options and flexibility for all clients’ unique testing needs through a comprehensive technology offering including cloud computing, pipeline services, record management, web portal services, clinical workflow, sequencing as a service, and automated lab services.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: management’s and others’ beliefs, judgments and estimates regarding Fulgent’s intention to repurchase shares of its common stock from time to time under the stock repurchase program, the intended use of any repurchased shares and the source of funding for these repurchases, funds needed for Fulgent’s strategic investments and the share repurchase program as well as statements, beliefs and judgments regarding Fulgent’s testing solutions and services, the Company’s identification and evaluation of opportunities and its ability to capitalize on opportunities to grow its business.

Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on management’s current assumptions, expectations and beliefs concerning future developments and their potential effect on the Company’s business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, the ongoing impacts of the COVID-19 pandemic, including the preventive public health measures that may continue to impact demand for its tests and the pandemic’s effects on the global supply chain; the market potential for, and the rate and degree of market adoption of, the Company’s tests, including its newly-developed tests for COVID-19 and genetic testing generally; the Company’s ability to capture a sizable share of the developing market for genetic and COVID-19 testing and to compete successfully in these markets, including its ability to continue to develop new tests that are attractive to its various customer markets, its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company’s ability to successfully integrate acquired businesses and assets into its business strategy and to derive value from its investments; the Company’s ability to maintain the low internal costs of its business model, particularly as the Company makes investments across its business; the Company’s ability to maintain an acceptable margin on sales of its tests, particularly in light of increasing competitive pressures and other factors that may continue to reduce the Company’s sale prices for and margins on its tests; risks related to volatility in the Company’s results, which can fluctuate significantly from period to period; risks associated with the composition of the Company’s customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company’s revenue; the Company’s ability to grow and diversify its customer base and increase demand from existing and new customers; the Company’s investments in its infrastructure, including its sales organization and operational capabilities, and the extent to which these investments impact the Company’s business and performance and enable it to manage any growth it may experience in future periods; the Company’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests; the Company’s level of success in establishing and obtaining the intended benefits from partnerships, joint ventures or other relationships; the Company’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; risks associated with the Company’s international operations; the Company’s ability to protect its proprietary technology platform; and general industry, economic, political and market conditions. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events.

The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law.

The Company’s reports filed with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 and the other reports it files from time to time, including subsequently filed quarterly and current reports, are made available on the Company’s website upon their filing with the SEC. These reports contain more information about the Company, its business and the risks affecting its business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220308005484/en/

Fulgent Genetics Investors



The Blueshirt Group

Nicole Borsje, 415-217-2633

nicole@blueshirtgroup.com

Source: Fulgent Genetics, Inc.

FAQ

What is the purpose of Fulgent Genetics' share repurchase program?

The share repurchase program aims to return capital to shareholders and address share price volatility.

How much has Fulgent Genetics authorized for its share buyback?

Fulgent Genetics has authorized up to $250 million for its share buyback program.

When was the share repurchase program announced?

The share repurchase program was announced in the press release dated March 8, 2022.

How will Fulgent Genetics fund the share buyback?

The buyback will be funded through Fulgent's working capital.

How many shares of common stock does Fulgent Genetics have outstanding?

As of March 7, 2022, Fulgent Genetics had approximately 30.3 million shares of common stock outstanding.