OSI Pharmaceuticals (OSIP) - formerly Oncogene Message Board

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Biotech / Medical : OSI Pharmaceuticals (OSIP) - formerly Oncogene

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To: Vector1 who wrote (174)	8/29/2002 9:16:34 AM
From: tuck	Read Replies (1) of 447

>>MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 29, 2002--OSI Pharmaceuticals, Inc. (NASDAQ: OSIP - News) announced today that it has repurchased $40 million of convertible senior subordinated notes in the open market for a cost of approximately $26 million. The Company originally issued $200 million of convertible notes in February 2002. "We have chosen to take advantage of this opportunity following what we consider to be an over-reaction in the marketplace last week to disappointing news on a competitor's rival drug candidate to Tarceva(TM)," stated Colin Goddard, Ph.D., Chairman and Chief Executive Officer of the Company. Both the common stock share price and the price at which the Company's convertible notes were trading declined significantly following the announcement on August 19th that a competitor's anti-EGFR drug candidate had failed to show a survival benefit in Phase III front-line combination chemotherapy trials. "This transaction is not only financially prudent but also sends a strong message that this organization remains confident in our own EGFR program and the overall prospects for EGFR inhibitors becoming an important class of drugs in the management of cancer. Furthermore, should conditions warrant, we may from time-to-time continue to enter the market in this regard," added Dr. Goddard. In repurchasing the notes for approximately $0.65 on the dollar, the Company will have effectively retired $40 million of the $200 million convertible notes issued in February 2002. The Company retains a strong balance sheet with approximately $482 million in cash on hand following the transaction. The transaction resulted in a net gain of approximately $12.6 million which will be recognized in the fourth quarter of this fiscal year. The transaction will also result in interest savings of approximately $10.3 million over the remaining life of the repurchased notes.<< snip Cheers, Tuck

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