Oramed Pharmaceuticals Inc. Announces the Buy-Back of its Common Stock
Oramed Pharmaceuticals (Nasdaq: ORMP) has announced a stock buy-back program worth up to $20 million. This plan, approved by the Board of Directors, allows the company to repurchase its common stock over the next 12 months. The buy-back can be executed through open market purchases, privately-negotiated transactions, or other methods, complying with Rule 10b-18 under the Securities Exchange Act of 1934. The decision to buy back shares will depend on various factors including stock price, market conditions, and alternative investments. The program does not obligate Oramed to repurchase shares and can be altered or terminated at any time by the Board. The repurchases will be funded from the company's existing cash reserves.
- Oramed Pharmaceuticals has initiated a $20 million stock buy-back program.
- The buy-back can be executed through open market purchases and privately-negotiated transactions.
- Repurchases will be funded using the company's cash on hand.
- The stock buy-back program does not obligate the company to purchase any shares.
- The program can be terminated, increased, or decreased at any time by the Board.
- The success of the buy-back is dependent on multiple factors including stock price and market conditions.
Insights
Oramed Pharmaceuticals Inc.'s announcement of a common stock repurchase plan is significant because it indicates the company's confidence in its financial health and future prospects. A stock buyback, also known as a share repurchase, is when a company buys back its own shares from the marketplace, thereby reducing the number of outstanding shares. This can be beneficial for investors as it often leads to an increase in the stock's price due to the reduced supply.
From a financial perspective, the authorized buy-back of up to
On the downside, if the company uses a significant portion of its cash reserves for buybacks, it might limit its ability to invest in other growth opportunities or manage potential financial downturns. Investors should keep an eye on how the company balances its buyback expenditures with other financial needs and investment opportunities.
The announcement of Oramed Pharmaceuticals' buy-back program is also noteworthy from a market sentiment perspective. Share buybacks can signal to the market that the company believes its stock is undervalued, which can boost investor confidence and potentially lead to a rise in stock prices. This move can be seen as a strategic effort to enhance shareholder value.
Market conditions and the timing of the buyback are important elements to monitor. If the buy-back is executed during a period of market volatility, it may be seen as a stabilizing action, which could positively impact the stock's performance. Conversely, if the market perceives the buyback as a defensive move against declining stock prices due to underlying business issues, the reaction could be less favorable.
Investors should also consider how this buyback compares to those of peer companies in the pharmaceutical sector. If Oramed’s buy-back is larger or more aggressive, it might indicate a stronger confidence in their financials or future prospects relative to competitors.
The manner, timing and number of shares purchased will be at the Company's discretion, depending on a number of factors, including price, general business and market conditions, and alternative investment opportunities. The Stock Buy Back Program does not obligate the Company to purchase any shares and expires in 12 months. The authorization for the Stock Buy Back Program may be terminated, increased or decreased by the Company's Board of Directors in its discretion at any time. Payment for shares repurchased under the program will be funded using the Company's cash on hand.
About Oramed Pharmaceuticals
Oramed Pharmaceuticals Inc. (Nasdaq/TASE: ORMP) is a platform technology pioneer in the field of oral delivery solutions for drugs currently delivered via injection. Oramed's novel Protein Oral Delivery (POD™) technology is designed to protect drug integrity and increase absorption. Oramed has offices in
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, we are using forward-looking statements when we discuss our potential repurchase of our shares. These forward-looking statements are based on the current expectations of the management of Oramed only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the risks and uncertainties related to the progress, timing, cost, and results of clinical trials and product development programs; difficulties or delays in obtaining regulatory approval or patent protection for our product candidates; competition from other pharmaceutical or biotechnology companies; and our ability to obtain additional funding required to conduct our research, development and commercialization activities. In addition, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; delays or obstacles in launching our clinical trials; changes in legislation; inability to close the transactions contemplated by our JV with HTIT in a timely manner or at all; inability of Scilex to repay the Note or our inability to realize the value of the Scilex warrants issued or transferred to us; inability to timely develop and introduce new technologies, products and applications; lack of validation of our technology as we progress further and lack of acceptance of our methods by the scientific community; inability to retain or attract key employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties that may develop with our process; greater cost of final product than anticipated; loss of market share and pressure on pricing resulting from competition; laboratory results that do not translate to equally good results in real settings; our patents may not be sufficient; and finally that products may harm recipients, all of which could cause the actual results or performance of Oramed to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Oramed undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting Oramed, reference is made to Oramed' s reports filed from time to time with the Securities and Exchange Commission.
Company Contact:
+1-844-9-ORAMED
ir@oramed.com
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SOURCE Oramed Pharmaceuticals Inc.
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