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COPENHAGEN - Ascendis Pharma A/S (NASDAQ:ASND), a biopharmaceutical company valued at $7.15 billion, has initiated a share repurchase program, with plans to buy back up to $18.25 million of its American Depositary Shares (ADSs) and net settle approximately 450,000 restricted stock units (RSUs) for roughly $9 million. The announcement comes as the stock has experienced a 7.65% decline over the past week, according to InvestingPro data. This strategy aims to preserve around 200,000 ADSs as treasury shares, the company announced today.
The repurchase program is in accordance with U.S. securities regulations, specifically Rules 10b-18 and 10b5-1. The company has the flexibility to conduct repurchases through various methods, including open market purchases, privately negotiated transactions, and block trades. The timing and volume of repurchases will be determined by market conditions and share price among other factors. Ascendis has clarified that there is no obligation to repurchase any specific number of shares and that the program can be modified, suspended, or terminated at any time without notice.
The net settlement of RSUs is a tax-related measure which is expected to save approximately 75,000 ADSs from being sold on the market to cover tax withholding obligations. This move, combined with the share repurchase program, is intended to maintain about 200,000 ADSs in the company’s treasury.
Ascendis Pharma is known for its TransCon technology platform, which it employs to develop new therapies with the potential to be best-in-class. With headquarters in Copenhagen and additional facilities in Europe and the United States, Ascendis is focused on making a meaningful difference in patients’ lives through its innovative drug development initiatives.
The company’s actions are forward-looking and subject to various risks and uncertainties. Factors that could cause actual results to differ include dependence on third parties, unexpected safety or efficacy results, unforeseen commercialization expenses, and the need for additional funding. While the company has achieved impressive revenue growth of 115.54% over the last twelve months, InvestingPro analysis indicates the company remains unprofitable with an EBITDA of -$345.06 million. For deeper insights into Ascendis Pharma’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 US equities. Ascendis’ financial and operational projections are detailed in their Annual Report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $125.42 to $290.80. InvestingPro subscribers can access additional insights, including 5 more exclusive ProTips and detailed valuation metrics that help paint a complete picture of the company’s investment potential.
This announcement is based on a press release statement from Ascendis Pharma A/S.
In other recent news, Ascendis Pharma has been the subject of various analyst reports. Cantor Fitzgerald maintained its Overweight rating on Ascendis Pharma, highlighting the early adoption of Yorvipath for the treatment of hypoparathyroidism. The firm expects a significant subset of patients with severe symptoms to begin treatment in the coming months.
JPMorgan also retained its Overweight rating on Ascendis Pharma, adjusting the price target to $167. The firm remains optimistic about the company’s prospects despite a decline in the stock’s performance. The focus is expected to shift back to the Yorvipath launch in the U.S., which is projected to be robust.
Goldman Sachs reaffirmed its Buy rating on Ascendis Pharma, citing an eventful year ahead for the company with the ongoing launch of its key PTH product. The firm remains positive about the early launch metrics for Yorvipath and its commercial prospects.
UBS initiated coverage on Ascendis Pharma with a Buy rating, expressing optimism about the company’s upcoming product launches and a possible shift towards profitability. The analysts believe that the market currently undervalues Ascendis Pharma’s long-term prospects.
In a recent development, Ascendis Pharma provided its full-year guidance for Skytrofa revenue, which fell short of the average analyst expectations. The company expects Skytrofa revenue to reach approximately €202 million for the year. This updated guidance prompted a negative response from the market. Despite this, the company’s overall revenue outlook for 2024 reflects a diversified income stream, including both product sales and strategic partnership milestones.
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