SHANGHAI, Aug. 12, 2011 /PRNewswire-Asia/ -- ShangPharma Corporation (NYSE: SHP) ("ShangPharma" or the "Company"), a leading China-based pharmaceutical and biotechnology research and development outsourcing company, today announced that its Board of Directors has approved a share repurchase program. The company expects to use cash and internally generated funds to pay for the ADSs that may be repurchased.
The board has authorized ShangPharma to buy up to $10 million of its American Depositary Shares ("ADSs") in the open market within two years from August 24, 2011, when ShangPharma's trading window for insiders re-opens, subject to market conditions and other factors. The repurchases will be made from time to time in open-market transactions on the NYSE at prevailing market prices, in negotiated transactions off the market, in block trades or otherwise pursuant to Rule 10b5-1 and/or Rule 10b-18 plans. The number of shares to be repurchased and the timing of repurchases, if any, will depend on a variety of factors, including, but not limited to, share price, economic and market conditions, and corporate and regulatory requirements. The repurchase program does not obligate ShangPharma to make repurchases at any specific time or situation. ShangPharma's Board will periodically review the share repurchase program and may authorize adjustments to the program's terms and size. The Board may also suspend or discontinue the repurchase program at any time.
In addition, Michael Xin Hui, ShangPharma's founder and Chief Executive Officer, intends to purchase up to $1 million of ADSs through a personal, family-owned company during the periods when he is legally permitted to purchase ShangPharma's ADSs.
Mr. Hui commented, "Given our confidence in the solid growth outlook of our company, strong operating cash flows, and our proven ability to create long-term value for our shareholders, our Board of Directors has implemented this share repurchase program. We will prudently deploy our cash in the best interest of our shareholders to enhance shareholder value."
As of July 31, 2011, ShangPharma had 336 million ordinary shares outstanding, represented by 18.7 million ADSs. Each ADS represents 18 ordinary shares.About ShangPharma Corporation ShangPharma Corporation is a leading China-based contract research organization providing high-quality and cost-effective services for the pharmaceutical and biotechnology industry. It offers a broad range of high-quality, integrated services across the drug discovery and development process to help international and Chinese pharmaceutical and biotechnology companies discover and develop novel drug candidates efficiently. ShangPharma's services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services. For more information, please visit www.shangpharma.com. For further information, please contact:ShangPharma CorporationIn Shanghai, ChinaMs. Lan XieVP of Finance and Investor RelationsEmail: IR@shangpharma.comChristensenIn New York:Kimberly MinarovichTel: +1 917-533-3268Email: firstname.lastname@example.orgIn Hong Kong:Tip Fleming Tel: +852-9212-0684Email: email@example.com
|SOURCE ShangPharma Corporation|
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