Odonate Therapeutics, Inc. (ODT), a pharmaceutical company, has declined 4.72% in aftermarket trading session and consequently is trading at $2.22 at the time of the writing. On Wednesday, ODT closed the day at $2.33 after plunging 29.39% in the mid-day session. The constant decrease is attributable to the announcement of planned return of capital to stockholders.
Why ODT Declining?
On Wednesday, ODT announced that it would initiate a share repurchase plan for the 20 million shares. That plan would be intended to return capital to the shareholders of the company. The act is connected to the company’s previously announced decision to discontinue the tesetaxel development. The company said that the share could be repurchased from time to time at the discretion of the company. The plan carries no limit and it could face discontinuation at any time. There were no assurances regarding the timing or number of shares that were to be repurchased.
Q3 2021 Financial Results
On 10th November, ODT reported the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash and cash equivalents of $95.02 million on 30th September 2021. The total operating expenses bore by the company during the quarter were $14.01 million against $30.65 million for the same period of 2020. The company suffered a net loss of $13.99 million against $30.47 million for the same period of 2020. The net loss per basic and diluted share during the period was $0.37 against $0.93 for the same period of 2020.
Michael Hearne, Chief Financial Officer of ODT, while commenting on the results said that the quarter provided the company with a much-needed boost with regards to its financial and performance metrics. He further said that looking ahead, the company seems to be in a good position realistically to build up momentum upon this performance and achieve even more improvement during the upcoming quarters.
Future Outlook for ODT
Statistics reveal that ODT had been in a state of decline during the last 12 months. That could be attributed to the negative sentiments associated with the stock, particularly the ones related to its abysmal financial performance. But estimates suggest that the company is well on track to leave behind that performance and achieve a successful financial portfolio in upcoming quarters.