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Insiders Are Buying Ophthotech

October 08, 2013 | About:
Markus Aarnio

Markus Aarnio

1 followers
One biotech has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

Ophthotech Corporation (OPHT), a biopharmaceutical company, develops various therapeutics to treat diseases of the eye.

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Insider Buying During the Last 30 Days

Here is a table of Ophthotech's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedCurrent Ownership (Direct+Indirect)Increase In Shares
Axel BolteDirectorSep 252,0002,000 sharesfrom 0 to 2,000
HBM Healthcare Investments10% OwnerSep 30228,0003,639,902 shares6.7%
Novo A/S10% OwnerSep 30455,0006,896,819 shares7.1%
Thomas DyrbergDirectorSep 30700700 sharesfrom 0 to 700


There have been 685,700 shares purchased by insiders during the last 30 days. The shares were purchased pursuant to the initial public offering.

Financials

Ophthotech reported the pro forma first six months financial results with the following highlights:

Revenue$0
Net loss$18.2 million
Cash$225.6 million
Tangible book value$5.97 per share


Pipeline and Upcoming Milestones


Ophthotech's most advanced product candidate is Fovista, which Ophthotech is developing for use in combination with anti-VEGF drugs that represent the current standard of care for the treatment of wet age-related macular degeneration, or wet AMD.

Ophthotech has initiated a pivotal Phase 3 clinical program to evaluate the safety and efficacy of Fovista combination therapy for the treatment of newly diagnosed wet AMD patients compared to current standard of care monotherapy. Ophthotech has begun treating patients in the United States in two of three Phase 3 clinical trials in this program, both of which are evaluating the safety and efficacy of 1.5mg of Fovista administered in combination with Lucentis.

Ophthotech expects to have initial, top-line data from its Phase 3 clinical program available in 2016. If the results of this Phase 3 clinical program are favorable, Ophthotech plans to submit applications for marketing approval for Fovista in both the U.S. and the EU before the end of 2016.

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Competition

There are a number of products in preclinical research and clinical development by third parties to treat wet AMD. Based on publicly available information, Ophthotech has identified, among others, the following product candidates:

  • Regeneron Pharmaceuticals (REGN) has an anti-PDGF product candidate that is being co-formulated with Eylea for administration in a single intravitreal injection and that is expected to enter clinical development in 2013.
  • Allergan (AGN) has an anti-PDGF, anti-VEGF DARPin product candidate that is being co-formulated for administration in a single intravitreal injection and that is expected to enter clinical development in 2014.
  • Xcovery Vision has an anti-PDGF, anti-VEGF product candidate in Phase 1 clinical development that is designed for oral administration.
  • Neurotech has a PDGF antagonist that is in preclinical development that is designed as an encapsulated cell technology implant.
  • Somalogic has an anti-PDGF product candidate in preclinical development.
Conclusion

There have been four different insiders buying Ophthotech and there have not been any insiders selling Ophthotech during the past 30 days. Two of these four insiders increased their holdings by more than 10%.

Ophthotech started trading on Sept. 25 after the IPO. The insiders paid $22 for their shares and the stock is currently trading at $29.99. I believe the stock could be a good pick at $22 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About the author:

Markus Aarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

Rating: 5.0/5 (1 vote)

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