SFBC International Inc., which operates the largest private clinical trials center in North America, said removing 325 of the center's 675 beds in an agreement with local officials won't harm its business because 66 percent of the beds were unoccupied.
SFBC's agreed to remove the beds after building code enforcement officials said the five-story building was unsafe. The company will move 120 beds to another Miami building and use available space as necessary at a center in Fort Myers, Miami- based SFBC said today in a statement on Business Wire.
``SFBC is confident that its ability to win new contracts and fulfill existing contracts will not be impacted by the current capacity of 350 beds at its principal Miami facility,'' the statement said.
The company's shares rose $2.55, or 16 percent, to $18.19 at 10:12 a.m. New York time in Nasdaq Stock Market composite trading. The shares have dropped 60 percent this year through yesterday.
A plan announced last month for the company to buy back up to one million shares has been changed to cover repurchases totaling $30 million, with 100,000 shares already purchased at $31, the statement also said. SFBC said its credit line was amended to permit the purchases.
``We believe that at current levels a stock repurchase program is an appropriate use of our cash and borrowing power under our credit facility,'' said SFBC Chief Executive Officer Arnold Hantman in the statement.
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