Is Avanir going to implement a stock buy-back program due to events in September 2001?
Stock buy-back programs make sense in certain conditions, but only if they can be done to the long-term benefit of the company and its shareholders. The federal government and the SEC have relaxed some regulations to make it easier for companies to purchase their stock. However, since Avanir is a California corporation, the shares we buy would only reduce the amount of shares in our float. They cannot be used for investment purposes and be re-sold. We feel that it is in the company’s best interest in the long-term to continue using those funds for the clinical trials we are currently conducting and to fund our research in the pre-clinical programs in discovery and development. We are confident that the long-term potential of these programs outweighs the small reduction in the amount of shares outstanding we would be able to affect. We also feel that using a substantial portion of our cash or borrowing money to buy back shares would not be intelligent use of our resources.
