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Monday September 18, 7:41 am Eastern Time
Press Release
SOURCE: US Oncology, Inc.
USON Announces Reinitiation of Stock Repurchase
HOUSTON, Sept. 18 /PRNewswire/ -- US Oncology, Inc. (Nasdaq: USON - news) announced today its Board of Directors approved the reinitiation of the Company's stock repurchase program.
In March of this year, the Board of Directors of the Company authorized the repurchase of up to 10 million shares. The Company subsequently repurchased approximately 3 million shares during the second quarter of this year, but suspended its plans in August, in part because of concerns about how a proposal by the Health Care Financing Administration (HCFA) to reduce reimbursement for a number of chemotherapy agents would affect the Company. As previously announced, HCFA has stated that it does not currently intend to reduce Medicare's reimbursement rate for chemotherapy agents, and that it will commence a comprehensive initiative to develop a more accurate reimbursement methodology for outpatient cancer therapy services.
``We are pleased with HCFA's recent announcement regarding reimbursement for outpatient cancer services,'' stated R. Dale Ross, USON Chief Executive Officer. ``We now have renewed confidence in our cash flow levels and capital structure, allowing us to continue our investments in cancer centers and to reinitiate the stock repurchase program. Our repurchase program demonstrates the Company's belief that the current stock price does not reflect long-term value.''
The shares could be repurchased periodically both in the open market and private transactions.
US Oncology represents the most extensive information platform for understanding cancer and the largest enterprise focused solely on this disease.
This press release contains forward-looking statements, including statements that include the words ``believes,'' ``expects,'' ``anticipates,'' ``intends'' or similar expressions and statements regarding our prospects. All statements other than statements of fact included in this press release are forward-looking statements. Although the Company believes that the expectations reflected in such statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Matters that could impact future results and financial conditions include reimbursement for healthcare services, particularly reimbursement for chemotherapy agents, integration of formerly separate operations in connection with the AOR-PRN merger, government regulation and the operations of the Company's affiliated physician groups. In addition, as stated above, HCFA is continuing to consider modifications to reimbursement for oncology pharmaceuticals and related services. Although it is not possible to assess the likely outcome of such considerations at this time, it is possible that changes in reimbursement that are ultimately adopted (including any reduction in the rate of reimbursement for pharmaceuticals that is not accompanied by a sufficient increase in reimbursement for services related to the infusion of those pharmaceuticals) may have a materially adverse effect on the Company's and its affiliated physicians' operations and financial condition. Please refer to the Company's 1999 Annual Report and Form 10-Q's for the first and second quarters of 2000 for factors that could cause actual results to differ materially from the Company's expectations.
SOURCE: US Oncology, Inc. |
