Cancer Drug Maker 3D Medicines Inc. Trading Higher After Company Announces It Will Repurchase Up To 10% Of Outstanding Shares

3D Medicines Inc. was trading 7.2% higher in the Hong Kong Wednesday morning session at HK$5.53 after the company announced that it is buying back up to 10% of its own stock. 3D Medicines said in a statement that it would buy back up to 25,605,700 shares over the next 12 months.

“The Board considers that the current trading price of the shares does not reflect their intrinsic value and the actual business prospects of the company,” it said in a statement.

The company’s management added that 3D Medicine’s financial position is “solid and healthy” and ITS “own financial resources would enable it to conduct the share repurchase without affecting operations.”

3D Medicine’s 2023 interim financial report showed that revenue climbed 70% year-on-year to 356.2.3 million yuan ($49.5 million) and gross profit was also up by the same amount to 325 million yuan, giving the company a gross profit margin of 92.3%. The sharply rising income was mostly the result of increased sales of 3d Medicine’s flagship Envida cancer therapeutic in overseas markets.

3D Medicines is a biotech company that competes with incumbents Novartis AG (NYSE: NVS), Roche Holding AG (OTC: RHHBF), BioNTech SE (NASDAQ: BNTX), Evaxion Biotech AG (NASDAQ: EVAX), Moderna, Inc. (NYSE: MRNA), Pfizer Inc. (NYSE: PFE) and Merck & Co., Inc. (NYSE: MRK) and listed on the Hong Kong Stock Exchange under ticker 1244.HK.

Despite the company’s strong sales and financial performance, year-to-date its share price has fallen 87% in value having been hit hard in the broader Hong Kong market sell-off this year, which also mauled other blue chip names in August and September this year. The plunge in 3D Medicine’s shares has seen the company’s market capitalization shrink to HK$3.73 billion ($480 million).

The 3D Medicine share repurchase announcement is in line with a string of stock buy-backs that companies listed on the Hong Kong Stock Exchange are undertaking this year as a result of a heavy market sell-off.