Device maker Synovis Life Technologies Inc. said its board of directors has authorized the company to repurchase up to 1 million shares of its common stock.
Synovis’ board gave it plenty of leeway for the buyback. There’s no expiration date and no minimum purchase amount, according to a statement from the company.
The company seeks to buy back shares because it believes its stock is undervalued, according to Chief Executive Richard Kramp.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
In addition to the 1 million shares, Synovis has the right to buy back 66,000 additional shares as part of a repurchase authorization from September, according to the statement. Synovis has about 11.2 million shares outstanding.
Last month, the company received U.S. Food and Drug Administration clearance for a device that measures blood flow immediately after surgical procedures in which veins have been connected.
Founded in 1985, Synovis divides its products into three major categories: staple-line reinforcement, soft-tissue repair and surgical tools.
Last year, Synovis received European regulatory approval for its signature Veritas technology, which involves converting cow tissue into a type of scaffolding that attracts the body’s own cells and blood vessels, allowing the body to eventually remodel the repaired tissue type.
