OPKO Health Announces $100 Million Increase to its Existing Share Repurchase Program

Rhea-AI Summary

OPKO Health (NASDAQ: OPK) has announced a $100 million increase to its existing share repurchase program, bringing the total program capacity to $200 million. The company has already repurchased approximately $41 million of common stock since the program's initial authorization in July 2024.

The expanded buyback program, representing about 14% of shares outstanding at current price levels, will be executed through various methods including open market purchases, block trades, and accelerated share repurchase transactions. OPKO had approximately 671.6 million shares outstanding as of February 24, 2025.

The company plans to fund the repurchases from existing cash reserves and future cash flows. The program has no time limit and can be modified or suspended at management's discretion based on market conditions and other factors.

Positive

• Significant buyback program expansion from $100M to $200M total capacity
• Strong cash position enabling both share repurchases and ongoing operations
• Already executed $41M in share repurchases since July 2024
• Large buyback representing 14% of outstanding shares at current price

Negative

• Share price considered 'significantly undervalued' by management, indicating poor market performance
• Diagnostic segment still requires streamlining to achieve profitability

Insights

Financial Analyst

OPKO Health's $100 million increase to its share repurchase program represents a significant capital allocation decision with positive implications for shareholders. The expanded authorization brings the total buyback capacity to $200 million, with $41 million already deployed since July 2024.

This enhanced repurchase program is substantial relative to OPKO's market capitalization of $1.28 billion. The total authorization now represents approximately 14% of outstanding shares at current prices, creating potential for meaningful reduction in share count and subsequent earnings per share support.

Management's explicit statement that shares are "significantly undervalued" signals strong conviction in the company's intrinsic value exceeding current market pricing. This buyback approach allows OPKO to opportunistically return capital while maintaining flexibility - the repurchases will occur through various mechanisms including open market purchases and block trades, with no specific timeline commitment.

The company's assertion that its "strong cash position" can simultaneously fund both operational priorities and share repurchases suggests healthy liquidity. For a healthcare company advancing clinical pipeline assets while working to improve diagnostic segment profitability, this balanced capital deployment approach indicates management confidence in the underlying business trajectory.

The discretionary nature of the program provides OPKO operational flexibility, as the authorization doesn't obligate specific purchase volumes or timing, allowing adaptation to changing market conditions and operational needs.

MIAMI, April 04, 2025 (GLOBE NEWSWIRE) -- OPKO Health, Inc. (NASDAQ: OPK) today announced that its Board of Directors has authorized an increase of $100 million to the Company’s existing common stock repurchase program, bringing the aggregate capacity of the program to $200 million. Approximately $41 million of OPKO’s common stock has been repurchased under the existing program since its authorization in July 2024.

“We believe OPKO’s shares continue to be 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. “Our strong cash position provides the ability to continue to fund our programs, while returning capital to our shareholders.”

OPKO intends to repurchase shares of its common stock from time to time through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions and/or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing and amount 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.

OPKO currently expects to fund the repurchase program from existing cash and cash equivalents, and future cash flows. The Company had approximately 671.6 million shares outstanding as of February 24, 2025.   This increased authorization, along with the prior authorization, represents approximately 14% of shares outstanding at the current stock price.

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:

Alliance Advisors IR
Yvonne Briggs, 310-691-7100
ybriggs@allianceadvisors.com
or
Bruce Voss, 310-691-7100
bvoss@allianceadvisors.com

FAQ

How much did OPKO Health (OPK) increase its share buyback program by in April 2025?

OPKO Health increased its share buyback program by $100 million, bringing the total program capacity to $200 million.

What percentage of OPK's outstanding shares does the buyback program represent?

The total buyback authorization represents approximately 14% of OPKO's outstanding shares at current stock price levels.

How much has OPKO (OPK) already repurchased under the existing buyback program?

OPKO has repurchased approximately $41 million of common stock since the program's initial authorization in July 2024.

How will OPKO Health (OPK) fund its expanded share repurchase program?

OPKO plans to fund the repurchase program using existing cash and cash equivalents, along with future cash flows.