Eubiologics to buy back 6 billion won shares, cancel 75%

[NA Eun-kyung, Edaily Reporter] Vaccine maker Eubiologics plans to buy back treasury shares worth 6 billion won as part of efforts to enhance shareholder value, the company said Tuesday.

Eubiologics said in a regulatory filing that it will submit a proposal to approve a treasury share acquisition and disposal plan at its annual general meeting scheduled for March 26. If shareholders approve the proposal, the company will proceed with the buyback program worth a total of 6 billion won.

The repurchase will be carried out through open market purchases on the KOSDAQ. The acquisition period will be within three months from the date of the shareholder resolution.

Based on the closing price of 13,290 won on March 4, the trading day prior to the board resolution, the buyback would amount to about 450,000 shares, although the final number may vary depending on the market price at the time of purchase.

The repurchased shares will be used for cancellation and employee compensation programs such as restricted stock units.

Eubiologics plans to cancel treasury shares worth about 4.5 billion won, equivalent to roughly 75% of the total shares acquired. Share cancellation reduces the total number of outstanding shares and is expected to increase per-share value, supporting shareholder value over the long term.

The remaining 1.5 billion won, or about 25%, will be used for employee incentives including restricted stock units. The company said the program aims to strengthen long-term motivation for key employees, attract talent, and build a performance-based compensation system linked to corporate value.

A company official said the treasury share acquisition is part of efforts to strengthen shareholder return policies.

“Along with enhancing shareholder value through share cancellation, we will continue to pursue sustainable corporate value growth by securing key talent,” the official said.

Eubiologics is also accelerating efforts to expand its premium vaccine pipeline based on its capabilities in supplying public vaccines.

The company is preparing to begin Phase 2 trials for its respiratory syncytial virus vaccine and shingles vaccine, while an Alzheimer‘s vaccine candidate is being developed with the goal of entering Phase 1 trials. In cooperation with the Korea Disease Control and Prevention Agency, the company is also developing a Nipah virus vaccine and expanding research on vaccines targeting emerging and reemerging infectious diseases.