Pharmaceuticals defend shares

摘要

Aegerion pharmaceuticals, a commercial-stage Pharmaceuticals company that currently sells only one drug, bought back US$45m worth of stock in conjunction with the sale of a US$300m, five-year convertible bond issue. In a similarly bullish move it spent additional money on a call-spread overlay to offset dilution to share prices. "They wanted to send the right message to shareholders," said one equity-linked banker close to the situation. "There was a certain element of balancing how much stock to repurchase relative to cash on the balance sheet. They are a little bit of a one-trick pony and need to acquire assets to grow the business."