Beleaguered Vancouver biotech QLT Inc. (TSX:QLT; Nasdaq:QLTI) has closed its special share buyback, distributing approximately US$50 million back to shareholders.
The company's cash reserves financed the share buyback, which was aimed at returning cash to QLT shareholders. The company's board believed the share price did not reflect the firm's value. Its share price had fallen below US$2.25 by late November, prior to the share buyback announcement.
Through a modified Dutch auction tender offer, 20 million QLT shares were bought for cancellation at US$2.50 each. They represented approximately 26.8% of the company's outstanding shares.
QLT recently reported a 34% annual decline in global sales of its signature Visudyne macular degeneration drug to US$141.9 million for the year ending December 31, 2008. At its peak, Visudyne was generating US480 million a year.
QLT's share price range during the past week: between $2.79 and $2.99; 52-week high: $4.39; 52-week low: $2.13.