Cipher Pharmaceuticals Inc. Launches Share Buyback Plan to Boost Shareholder Value
- Cipher Pharmaceuticals initiates a share buyback plan, allowing repurchase of up to 1,485,260 shares over 12 months.
- The buyback aims to optimize capital structure and enhance shareholder value in response to market conditions.
- Previous NCIB and substantial issuer bid demonstrate Cipher's proactive approach to managing capital and boosting shareholder confidence.
Cipher Pharmaceuticals Initiates Share Buyback Plan to Enhance Shareholder Value
Cipher Pharmaceuticals Inc. announces its intention to launch a normal course issuer bid (NCIB) for its common shares, receiving approval from the Toronto Stock Exchange (TSX). This move allows the company to repurchase up to 1,485,260 common shares, which constitutes 10% of its public float, over a 12-month period from May 5, 2025, to May 4, 2026. As of April 22, 2025, Cipher has a total of 25,622,940 common shares outstanding, and the repurchase price will be determined based on the market price at the time of acquisition. This strategic initiative is part of Cipher’s ongoing efforts to optimize its capital structure and return value to shareholders.
The NCIB is designed to provide Cipher with flexibility in managing its share repurchase program. The company plans to conduct these repurchases through the TSX and may utilize private agreements under applicable securities laws, which could allow acquisitions at a discount to market prices. Daily repurchases on the TSX are capped at 10,427 shares; however, Cipher intends to leverage a weekly block purchase exemption to exceed this limit when necessary. This approach not only aligns with the company’s commitment to shareholder returns but also serves as a tactical response to market conditions, allowing for strategic buybacks that can enhance earnings per share.
This announcement follows Cipher's previous NCIB, which was active from November 20, 2023, to November 19, 2024, resulting in the repurchase of 115,876 shares at an average price of approximately CDN$6.86. Additionally, the company executed a substantial issuer bid in September 2023, offering to buy back up to CDN$6,000,000 of its shares, successfully repurchasing 1,290,321 shares at CDN$4.65 each. These past actions demonstrate Cipher's proactive stance in managing its capital and fostering shareholder confidence.
In related developments, Cipher continues to focus on expanding its product pipeline and enhancing its market position within the pharmaceutical sector. The company's strategic initiatives not only aim to optimize shareholder returns but also ensure a robust foundation for future growth as it navigates the competitive landscape of the industry. The upcoming NCIB reflects Cipher's commitment to maintaining flexibility in its operational strategy while aligning with market dynamics.