Obagi Medical Products Inc.’s two largest shareholders, one of them the company’s founder, are selling their stakes in a combination stock sale and share repurchase by the company.

The Long Beach developer of skin care products sold in doctor’s offices on Friday priced a secondary offering of 2.69 million shares now held by a Stonington Capital Partners LLC fund and by the Zein and Samar Obagi Family Trust. The company also will buy back 3.56 million shares though its stock buyback program.

The company says the selling shareholders won’t own any shares of Obagi common stock when the transactions are completed, even though the most recent regulatory filings indicate they have larger holdings.

Stonington, a Toronto investment firm that helped take the company public in 2005, is Obagi Medical’s largest shareholder with more than 4.7 million shares, or 21.5 percent of outstanding shares. Dr. Zein Obagi, who has been embroiled in a legal dispute with the company since January, is its second largest shareholder with 2.1 million shares, or 9.7 percent of shares.

The secondary offering was priced at $10.25 per share, a 4 percent discount to Thursday’s closing price of $10.70. The $35 million share buy-back is priced at $9.84, an 8 percent discount to Thursday’s close. Stifel Nicolaus Weisel is acting as sole underwriter for the offering, which is expected to close by Nov. 24. The buy-back is expected to close three days later.

Shares closed down 24 cents, or 2 percent, to $10.47 on the Nasdaq.