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Prescription drugs

Cardiome to buy back 9.7% of its stock Add to ...

Cardiome Pharma Corp. says it expects to pay $4.25 (U.S.) per share, the minimum price of a previously announced range, through a $27.5-million tender offer that expired Tuesday.

The drug development company had announced in August that it would pay between $4.25 and $5.10 per share to buy back between 6.47 million and 5.39 million of its common shares for a total of $27.5-million.

Cardiome used a modified Dutch auction procedure to determine the price.

According to preliminary results announced Wednesday, any shares tendered above $4.25 ($4.40 Canadian) won't be taken up by the company while any shares tendered at or below that price will be purchased for $4.25.

The price Cardiome will pay is below the Tuesday closing price of $4.80 (U.S.) at the Nasdaq stock market and $4.90 (Canadian) on the Toronto Stock Exchange. They closed at $4.59 on Aug. 25, the day the share buyback was announced.

The heart drug company said on Aug. 11, in its most recent quarterly report, it had a net loss of $1.4-million or 2 cents a share for the April-June period, narrowing last-year's loss for the same period of $18.1-million or 28 cents.

Cardiome's revenue soared to $8.6-million from $200,000, largely due to its agreement with Merck & Co., Inc., one of the world's largest pharmaceutical companies.

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