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The Female Health Company (NASDAQ:FHCO) Drops to 2-Year Low; Stops Dividend Payments

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By on BioPharma

The Female Health Company (NASDAQ:FHCO) shares fell to their lowest level since March 2012 after saying it will suspend payment of its quarterly dividend and devote cash flows to strategic initiatives in an effort to boost growth. FHCO was down nearly 9% in recent trade, having earlier hit a low of $5.05. The 52-week high is at $10.13.

The maker of the FC2 Female Condom said it will invest in marketing of its the condom and will evaluate investments in new products, technologies and/or businesses that complement the core competencies and strengths of the company.

“We believe the risks associated with a single product offering, along with the significant volatility in purchasing patterns for FC2, can be mitigated by the presence of a more diversified portfolio of business activities,” CEO Karen King said in a statement. “We believe the company can leverage its experience and success with FC2 by embracing complementary technologies or product opportunities, and the process of assessing such strategic options is already underway.”

King said the company may also use part of its cash flow to buy back shares, without offering additional details. Meanwhile, the Female Health Company said it expects to report sales of 13.7 million units for fiscal Q3 ended June 30, up 9% from the year earlier and up 88% from fiscal Q2.

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