RE:RE:Insider buyingWhile I agree with what you're saying in priniciple, I've been following the company since 2007, and here are a few observations:
- They just don't spend the big bucks to develop new drugs themselves. That's not their business model.
- The company has consistently said that traditional acquisitions are too expensive to meet their profitability thresholds, so they haven't made any. It's possible that situation might change, but competition has kept prices high for well over a decade, so that big cash outflow seems unlikely at present.
- They have done numerous in-licensing deals for already developed drugs, some of these already having Health Canada approval and some requiring a submission. Either way, the cost of these deals has been modest.
- Marketing costs for new in-licensed drugs has been modest.
- They have slowly accumulated cash over the past decade. Lately, they've used some of it to repurchase about 11% of their shares, without depleting cash in a significant way because they generate a fair amount of it.
- They consistently say that their cash balance is far higher than needed to operate the business.
Given the above, I'm happy to see them increase long term EPS by about 11% via the share repurchase route. It seems like a good use of capital to me.
Of course, the big deal right now is the 2 upcoming product launches. They could, over time, give EPS/cash flow quite a boost.
Regards...i22
Aarman4 wrote: theinvestor22 wrote: Nice to see a couple of insiders buying recently. I would think this would be a good time for the company itself to buy back some shares with that huge amount of cash in the bank.
As nice as that would be in the short term for the share price, I would say the mid and long term share price will be far better off if they use that capital for growing the company by developing and acquiring more products, as well as marketing and selling those and current product lines into new markets. This is a very very small company, and it needs every penny to grow! The share price will follow the growth... When the growth isn't possible, then let's increase share value using those methods. Cheers!